iHM Asks FCC to Remove ''Debtor-in-Possession Status''
|RADIO ONLINE | Wednesday, October 10, 2018 | 6:05pm CT|
iHeartMedia has filed with the FCC asking the agency to remove "debtor-in-possession status" as it prepares to exit from Chapter 11 restructuring, along with a plan on how it will operate the company. There were seven separate Form 314 filings under each of the licensee names used by the radio giant on Tuesday, including AMFM Broadcasting, AMFM Radio Licenses, AMFM Texas Licenses, Capstar, Citicasters, Clear Channel Broadcasting Licenses and CC Licenses LLC.
The filings also revealed that one entity will hold an attributable percentage of its Class A Common Stock following its Chapter 11 departure -- Mould Fountain Funding, wholly owned by Liberty Media Corp. replacing the previous holders of Bain Capital and Thomas H. Lee Partners. Also, each contained a "Comprehensive Exhibit," a "Plan of Reorganization" and a "Disclosure Statement," in addition to the details of Local Marketing Agreements (LMA).
Additionally, iHM said it would need to divest two small-market stations as the reorganization of iHM would remove grandfathered rulemakings for the company when it was Clear Channel Communications. The company's station combos are in compliance in all markets but Brunswick GA and Grand Forks, ND-MN. A FM station in each market will be placed in a divestiture trust in order that the stations could be sold later.
Shareholders have until November 9 to vote on the company's Chapter 11 reorganization plan that was approved by a U.S. Bankruptcy Court in Houston.