IHeartMedia Inc., the biggest U.S. radio-station owner, filed for bankruptcy in hopes of diminishing more than half of the company’s $20 billion debt. On Wednesday, IHeart filed for Chapter 11 in Houston. The company’s 850 radio stations and 17,000 employees is in dire need to continue its operations. The Chapter 11 deal has not been approved by the court or a few creditors. However, John Malone’s Liberty Media has come forth to offer to purchase a stake in IHeart. “Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company,” Chief Executive Officer Robert Pittman said in a statement. After trying to ink a deal with creditors since last March, the company said that it reached an accord with investors holding more than $10 billion of its debt, along with its private equity owners, Bain Capital and Thomas H. Lee Partners. Their leveraged buyout in 2008 was the reason for much of iHeart’s borrowing, and the company hasn’t posted an annual net profit for a decade. While cash has run short, iHeart said there’s enough on hand, along with what it can earn from operations, to keep the business going, cutting the need for expensive new bankruptcy loans. (via Nola.com) Read more HERE.
