Tuesday, March 6, 2018

"iHeart bankruptcy proposal would erase $14.8 billion of debt as lenders extend deadline" (IHRT)

Kind of a big deal.
From the San Antonio Express-News:
Investors in San Antonio-based iHeartMedia Inc. have agreed to give the troubled radio station giant more time to work out the final details of an agreement that will allow it to wipe out most of its debt in bankruptcy.

The new proposal filed with the Securities and Exchange Commission Monday would reduce the company’s debt from $20.6 billion as of Sept. 30 to just under $5.8 billion under a Chapter 11 bankruptcy reorganization plan. Clear Channel Outdoor Holdings, the company’s billboard subsidiary, would be spun off on its own as part of the deal. Bondholders would receive stock in Clear Channel as well as a mix of equity in the newly recapitalized iHeart.

The company, which owns 850 radio stations, had until this past weekend to make good on a $106 million bond payment or trigger accelerated repayment on bonds issued in 2008.

iHeart now has until 11:59 p.m. Wednesday to reach agreement under a forbearance plan announced Monday morning. The agreement will also become null and void if the company defaults for other reasons....MORE
As noted in December 20's "iHeartMedia investors reject company plan to avoid bankruptcy" (IHRT)":
Just following up on this one. Although there were a couple different ways to trade the debt (despite some credit default swaps being triggered almost a year ago) shorting the equity (worthless but bid at 59 cents) was not formally doable. So it is more my fascination with $20 billion in debt not getting re-negotiated for what seems like forever.

The hometown paper has been our go-to and here it is again, December 5....
May 4
Bain Capital/Thomas H Lee-Controlled iHeartMedia Probably Facing Bankruptcy (IHRT)
July 26 
Bain Capital/Thomas H Lee-Controlled iHeartMedia Continues Stately Descent Into Bankruptcy (IHRT)

As was said back in May:
"This wouldn't really be noteworthy except for the fact IHRT is the largest operator of radio stations in the U.S. and the debt involved is a bit over $20 Billion.". 
Aug. 4
"iHeartMedia edges closer to bankruptcy with $174 million 2Q loss" (IHRT