Report: iHeartMedia May Not Survive Another Year

RADIO ONLINE | Sunday, April 23, 2017 | 6:23pm CT

iHeartMedia Inc., parent of iHeartRadio and Clear Channel Outdoor, warns in a SEC filing that its plans to include language in its next quarterly report warning investors that it may not survive another year, reports MarketWatch. The radio giant said it continues to expect cash flow to be negative and is uncertain as to whether it will be able to refinance or extend the maturities of some of its borrowings.

MarketWatch reports that the radio giant has almost $350 million of debt coming due in 2017, which was part of the $20 billion in debt it assumed as part of a $24 billion leveraged buyout of then Clear Channel Communications by private-equity firms Bain Capital and Thomas H. Lee Partners in 2008. It has another $8.3 billion of debt coming due in 2019.

"Management anticipates that our financial statements to be issued for the three months ended March 31, 2017, will include disclosure indicating there will be substantial doubt as to our ability to continue as a going concern for a period of 12 months following the date the first quarter 2017 financial statements are issued," the company said in its SEC filing.

Meanwhile, Reuters reported Friday that a group of iHeartMedia lenders have signed a cooperation agreement opposing any attempt at a debt overhaul, a move that could threaten the company's bid to avoid bankruptcy.