iHM, Lenders Extend Forbearance Agreement Again
| RADIO ONLINE | Wednesday, March 14, 2018 | 2:06pm CT |
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iHeartMedia has reached another forbearance with certain lenders on Wednesday morning, according to a filing with the SEC. It gives iHeartMedia another day to reach a deal over its $20 billion in creditors. Without an agreement, it's likely that iHeartMedia will be forced into bankruptcy this week. A proposed reorganization plan filed with forbearance documents reduces iHM's debt from $20.6 billion to $5.8 billion. Additionally, the company's outdoor unit, Clear Channel Outdoor Holdings, would be spun off. Bondholders would receive stakes in Clear Channel and equity in a newly recapitalized iHeartMedia.
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 missed a February 1 interest payment and the 30-day grace period is running out. iHM also skipped payments on two more sets of bonds last week.
