iHM, Certain Lenders Extend Forbearance Agreement

RADIO ONLINE | Thursday, March 8, 2018

iHeartMedia

In a SEC filing on Thursday morning, iHeartMedia said the forbearance agreement that expired Wednesday night between it and certain lenders has been extended until 11:59pm Monday. The Forbearance Agreement was originally reached on Sunday to delay lenders from accelerating iHM's $20 billion in debt into default. Under the agreement, the lenders have agreed not to trigger an event of default from the company's February 1 decision to skip a $106 million interest payment on its 14% senior notes due 2021. iHM has also agreed not to make any other debt payments during the agreement's time frame.

As previously reported, despite a year of negotiations on a restructuring plan, a formal support agreement still isn't in place with the most-senior lenders. The company mised a February 1 interest payment and the 30-day grace period is running out. iHM also skipped payments on two more sets of bonds on Thursday.

Last week Liberty Media made a last-minute offer to senior creditors that would help salvage iHeartMedia by injecting cash and financing a trip through bankruptcy, but analysts have said the bid isn't high enough to win over creditors.