iHeart Chapter 11 Update
Is it just me or does it feel like iHeart declared bankruptcy about two years ago? Believe it or not they just went into Chapter 11 on March 14th, and are already making plans to emerge sometime in early 2019. As a reminder, the terms of the restructure include iHeart’s creditors receiving a 94% stake in the new entity, along with $5.55B in new debt owed to them.
With its lenders having almost total control over iHeart it’ll be interesting to see how the company will be structured going forward. Will they begin to sell off properties to pay down their debt? Would they think about spinning off the streaming platform into its own standalone company? And will Bob Pittman and Richard Bressler continue to run the show? I guess we’ll find out these answers and more over the next few months.