IHeartMedia Inc. on March 15 said it and subsidiaries including iHeartCommunications Inc. filed for Chapter 11 bankruptcy, paving the way for the company to reduce its debt by more than $10 billion and keep operating.
The move follows weeks of negotiations with the company's creditors after the radio company in February missed an interest payment on a series of unsecured senior notes. The bankruptcy petitions were filed in the U.S. Bankruptcy Court for the Southern District of Texas, Houston division. The filings did not apply to iHeartMedia indirect subsidiary Clear Channel Outdoor Holdings Inc. Clear Channel and its subsidiaries did not commence Chapter 11 proceedings.
IHeartMedia said its cash on hand and cash generated from ongoing operations should be sufficient to fund and support its business during the Chapter 11 proceedings.
Kirkland & Ellis LLP is serving as legal counsel to iHeartMedia, Moelis & Co. is serving as the company's investment banker, and Alvarez & Marsal is serving as the company's financial adviser.
IHeartMedia Inc. is a global media, entertainment and data company that specializes in radio, digital, outdoor, mobile, social, live events, on-demand entertainment and information services for local communities.
