Report: Group Rejects Latest iHM Debt Proposal
| RADIO ONLINE | Friday, December 1, 2017 |
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 iHeartMedia |
A group of creditors have rejected iHeartMedia's latest debt restructuring proposal. In an 8K filing with the SEC, the radio giant disclosed that the group of creditors proposed their own deal that would require the company to file for chapter 11 bankruptcy protection. The development comes a day after Cumulus Media said it would file for chapter 11 bankruptcy and enter into restructuring deals.
According to to the Wall Street Journal, a large group of bond and loan holders led by Franklin Resources rejected iHeartMedia's latest proposal even after the company increased the amount of equity offered to the group at more than 87% in both the iHeartRadio business and the company's controlling stake in its Clear Channel Outdoor Holdings. Under the iHM's latest proposal, the company's private-equity owners Bain Capital and Thomas H. Lee Partners, would retain 12.5% of the shares in both.
WSJ reports the company's plan would cut $7.7 billion of iHeartMedia's $15.5 billion in debt, and the proposal by the Franklin-led group would reduce even more debt.
