Court OKs iHeart’s Bankruptcy Plan
Late Tuesday a Federal Bankruptcy Court approved iHeart’s plan to officially reorganize the company, which paves the way for the company to emerge from bankruptcy. The deal includes a plan to reduce iHeart’s debt from $16.1B to $5.75B, and spin off ClearChannel Outdoor into a separate company. Interestingly, as part of the reorg plan iHeart’s CEO Bob Pittman and CFO Richard Bressler also extended their employment contracts by four years. (insert the “meet the new boss, same as the old boss” line from The Who here)
There’s still no firm timeline for the company to exit bankruptcy, but estimates are around the middle of Q2. In public comments Mr. Pittman is signaling full steam ahead with operating iHeart as a standalone business. However, rumors still persist about a buyout from Liberty Media or even Apple. Plenty of time between now and May-June for some sort of M&A activity – we’ll keep an eye out.