In an SEC filing late last week, iHeart Communications detailed more of the ongoing negotiations the company is having with lenders. iHeart has been working with lenders to find a way to deal with over $20 Billion in debt.
Earlier this month the iHeart Board chose not to make an interest payment of $106 million and now it appears the company may be edging closer to a deal with lenders. Here are the latest details.
Although no deal has been reached yet, lenders are proposing $5.5 Billion in a new recapitalized iheart (over 5-7 years), 94.75% equity in iHeart and 100% ownership in iHeart Outdoor. iHeart’s counter-proposal to lenders is $5.5 Billion in new debt, 89.5% equity in iHeart and 100% ownership in iHeart Outdoor. Back on January 10, iHeart was proposing 88.3% equity in the iHeart and 100% ownership in Outdoor.
Here are the two most recent proposals that were filed with the SEC on Friday of last week.
“Being dragged to the edge and forced to stare into the abyss” might also qualify.
Those with parachutes and escape pods have no worries.
They won’t even be required to spend two minutes in the penalty box where they will feel shame.
You’re right. Bobby Pittman and his VP Minions will all cash their bonus checks, while the creditors and others take a haircut. But a “negotiated” haircut, right??! Lol! … If or when this 23 billion lands in bankruptcy court, the Federal Trustee should seize all the stations and sell them to the highest bidders, with the money going to the creditors. But that won’t happen if it’s a “Pre-Packaged Bankruptcy.”… You gotta love America!!!!
Keep in mind that the two biggest creditors basically HIRED Pittman. Any bonus he gets was granted to him by the members of the Board. This isn’t like Congress, where they vote themselves pay increases.
No, a bankruptcy is done in the courts. This kind of thing avoids the judge or court. However one can expect other creditors to file suit.
These are pre-packaged bankruptcies. So let’s be real please. Wouldn’t it be more accurate to report and say “iHeart Moving Closer to Bankruptcy” ??