iHeart Goes Into Bankruptcy Overtime
iHeart was hoping to emerge from bankruptcy in late January, but now it’s kicking the can down the road a bit. Yesterday in a court filing iHeart asked to extend its protection window in order to resolve outstanding legal issues from February 7th to June 7th. This isn’t the first extension iHeart has asked for since going into bankruptcy protection last March, and it seems reasonable that their request will be granted.
So what’s the hold up? iHeart still has a few shareholder lawsuits outstanding, which they’ll need to resolve before emerging from bankruptcy. They’re also trying to divest their ClearChannel Outdoor subsidiary as part of the debt reduction plan.
While these are legitimate reasons to prolong bankruptcy protection, there’s also speculation that iHeart could be using the extra time to find a buyer. Rumors have been circulating about Liberty Media or Apple buying part or all of the company. As recently as last week iHeart CEO Bob Pittman stated that they’re “open to partnering” with the right buyer.
I guess we’ll have to wait a few more months to see how this one plays out.