IHeartCommunications Inc.'s board elected not to make a cash interest payment of $106 million to holders of its 14% senior unsecured notes due 2021.
The payment, which was due Feb. 1, was not made as active discussions continue among its lenders, noteholders, and financial sponsors regarding a debt restructuring, the company said Feb. 1. Also, the board is considering options as part of its strategy to achieve a comprehensive restructuring of the company's debt.
The decision will not trigger an event of default under the indenture as the company will utilize a 30-day grace period during which it retains the right to make the interest payment to the holders of the notes and remain in compliance with the indenture governing the notes.
IHeartCommunications is a unit of iHeartMedia Inc.
