On Monday, iHeart announced some good news regarding its bankruptcy proceeding. The company says it has received overwhelming creditor support for its plan to reorganize. iHeart filed for chapter 11 protection back in March and is expected to emerge in 2019 with 50% less debt, knocking off $10 billion.
Voting results indicate that every class of creditors entitled to vote has voted to approve the plan. More than 90% of the votes cast by creditors and shareholders who participated in the vote approved the plan. A company press release hints that, due to this vote, there should be no problem getting the plan approved.
iHeart stated in the press release that the “voting results indicate strong support of iHeartMedia’s plan, which achieves a value-maximizing restructuring that comprehensively addresses the company’s funded debt obligations and positions iHeartMedia for continued growth and long-term success. The plan will reduce iHeartMedia’s funded debt by approximately $10.3 billion—to $5.75 billion—and result in the separation of iHeartMedia’s radio and outdoor advertising businesses. With the support of its creditors and the expected confirmation of the plan, iHeartMedia expects to complete its restructuring process and exit Chapter 11 in early 2019.”
Final voting results will be filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division, prior to the hearing to confirm the plan.