Report: Bankruptcy imminent for iHeartMedia
The largest radio broadcaster in the United States, iHeartMedia will reportedly file for bankruptcy as early as the weekend of March 2-4.
The mass media corporation has been preparing documents for the bankruptcy, according to Bloomberg. The bankruptcy arises as the product of iHeartMedia’s staggering debt, a figure that amounts to almost $20 billion. The brand notably failed to pay its February 1 interest payment, as well as two additional payments on two different kinds of bonds. iHeartMedia is currently nearing the end of the 30-day grace period on its initial missed interest payment.
While iHeartMedia has attempted to manage its debt over the past year, the corporation’s efforts have largely been unsuccessful. Talks regarding iHeartMedia’s fate are ongoing, in which the corporation’s private equity sponsors, Bain Capitol and Thomas H. Lee Partners, have cited maintenance of a stake in the reformed company as a “sticking point.”
iHeartMedia controls 850 radio stations across the U.S. If iHeartMedia does go bankrupt, it will be just three months apart of Cumulus’ December bankruptcy. Cumulus accounted for about 450 stations, making it the second largest radio operators.
John Malone’s Liberty Media is said to have offered $1.4-billion to take 40% of iHeartMedia, but investors have noted that the bid was simply not high enough for approval.