Eight hundred and fifty radio stations felt the heat today when its operator iHeartMedia submitted paperwork for bankruptcy.
In an effort to restructure debt – caused by a leveraged buyout of Clear Channel Outdoor in 2008 along with the declining radio business – the company showed its crafty resilience by also announcing an agreement made with creditors and investors to reorganize $10 billion of the debt, which is half of the debt owed.
“The agreement…allows us to definitively address the more than $20 billion in debt that has burdened our capital structure,” iHeartMedia CEO Bob Pittman said in a statement.
What’s interesting is that the long-time radio honcho also operates iHeartRadio’s music streaming service, which hasn’t been able to compete with culture mavens like Spotify and Pandora. In spite of its woes, the struggling service says the cash-on-hand will sustain them through the Chapter 11 nightmare.
When was the last time you streamed music from iHeartRadio?
Source: CNN Money