The New York Post is reporting the biggest creditor of iHeartMedia is ready to make a deal on a debt restructuring plan. The paper says Mutual Fund Franklin Resources is working with investment bank PJT Partners on the plan to present to the company next week. Franklin owns $2.3 billion of iHeart’s $20 billion debt. The Post reports that Franklin may ask for creditors to get a majority stake in the business and issue new debt, perhaps as much as $1 billion, that would need to be paid first before equity holders could take any distributions or dividends.
You may recall last month several lenders split from Franklin and came close to reaching a restructuring plan with the company. The creditors, led by Symphony Asset Management, will not sign any new deal unless Franklin also agrees to the terms, according to the paper.
