iHeartMedia, Certain Subsidiaries Enter Chapter 11

RADIO ONLINE | Thursday, March 15, 2018

iHeartMedia

iHeartMedia has reached an agreement with holders of more than $10 billion of its outstanding debt and its financial sponsors. To implement the balance sheet restructuring iHM and certain of its subsidiaries, including iHeartCommunications, have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. Clear Channel Outdoor Holdings and its subsidiaries did not enter Chapter 11 proceedings.

The company has filed with the Bankruptcy Court a series of motions seeking to maintain business-as-usual operations and uphold its commitments to its employees and other stakeholders during the process. These "first day" motions, which the company expects to be granted, will help facilitate a smooth transition into Chapter 11. iHM believes that its cash on hand, together with cash generated from ongoing operations, will be sufficient to fund and support the business during the Chapter 11 proceedings.

"iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters. We have transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms, and the iHeartRadio master brand that ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers," said Chairman/CEO Bob Pittman.

He continued, "The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure. Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia's position as America's #1 audio company."

Kirkland & Ellis LLP is serving as legal counsel to iHeartMedia, Moelis & Company is serving as the Company's investment banker, and Alvarez & Marsal is serving as the Company's financial advisor.