The negotiations will continue between iHeartCommunications and some of its lenders as they work toward restructuring iHeart’s $20 billion of debt. The deadline, which expired Wednesday night, has been extended another three business days — through 11:59 p.m., Monday, March 12. This gives the two sides another five days, if they happen to work weekends, to hammer out a deal.
iHeart skipped a $106 million interest payment on February 1 which set off a 30-day clock before a possible default. Just as that 30 days was about to expire, the two sides agreed to a 72-hour extension to continue to negotiate a deal. Another $138 million in interest payments also went unpaid by iHeart on March 1, setting off another 30-day clock on a possible default, as the two sides continued discussing a possible agreement to restructure iHeart’s debt.
iHeart’s latest known proposal to lenders would give holders of secured loans, who are owed nearly $13 billion, $5.6 billion in new debt and 93.25% of the equity in a reorganized iHeartMedia. They would also receive 89.5% of Clear Channel Outdoor. Holders of unsecured notes, who are owed about $2.2 billion, would receive $200 million in new debt and 5% of the equity in a reorganized iHeart. The proposal would have allowed current equity holders to receive 1.75% of the equity in a reorganized iHeartMedia.
Regarding the boat Ron… remember, the ones getting soaked here are the creditors, not IHeart! …While Pittman and Bressler are busy cashing their multi-million dollar bonuses for… hmmmm, not sure what they did to deserve bonuses!? – Oh well, it’s America baby!! Nothing like a nice corporate bankruptcy, to legally stiff your creditors AND get paid for it!!! Gee, I wonder how Bob Pittman and iHeart would feel if THEIR creditors (advertisers) didn’t pay THEM ???
Remember Roy: no bonuses have been issued. None. They will be eligible for those bonuses AFTER they make it through bankruptcy. And guess who approved the bonus offers? The creditors!
Note from iHeart: “We need a bigger boat!”