iHeartMedia has filed a document with the bankruptcy court requesting an extension, “within which the debtors may remove actions.” The company is requesting they be given until at least June 7 to resolve time-sensitive matters critical to their restructuring. iHeart has received approval for several similar extension requests.
In the document iHeart states that it is “involved in multiple actions in Texas, New York, and Pennsylvania.”
iHeart says it has continued to work diligently to resolve the time-sensitive issues which include:
– stabilizing their business operations by coordinating with vendors and other counterparties to preserve contracts on a consensual basis.
– negotiating the separation of Clear Channel Outdoor.
– negotiating, preparing, and filing an amended plan to incorporate the terms of the CCOH separation.
– defending against two complex adversary proceedings filed by the Legacy Notes Trustee.
– negotiating and consulting with various stakeholders to resolve objections to the Plan.
Because the restructuring is so massive iHeart says it is not yet prepared to decide which, if any, actions they will seek to remove. The court has approved a similar request made by iHeart several times before. The last approval was made on November 30, 2019. That extended the “removal period” to February 7, 2019. A hearing will be held on this latest request on Monday February 5.
The filing goes on to state that given the size and scope of iHeart’s capital structure and business operations, expeditiously moving toward exit from these chapter 11 cases will require significant effort. “Due to the debtors’ efforts to date, they are on track to consummate a restructuring that will maximize value for all stakeholders. As a result, the debtors have not yet determined conclusively which actions, if any, they will seek to remove. The extension requested herein will provide the debtors with time to make informed decisions concerning which actions to remove and will ensure that the debtors’ rights to remove actions can be exercised in an appropriate manner.”
iHeart filed for chapter 11 on March 14, 2018. The company expects to emerge from bankruptcy early this year with approximately $10 billion less in debt.
