comscore Radio giant iHeartMedia files bankruptcy plan to reduce debt | Honolulu Star-Advertiser
Business Breaking | Top News

Radio giant iHeartMedia files bankruptcy plan to reduce debt

  • ASSOCIATED PRESS / 2017

    The logo for iHeartRadio, owned by iHeartMedia, Inc., is shown.

NEW YORK >> IHeartMedia, one of the world’s largest radio companies, is seeking bankruptcy protection as part of an agreement with its lenders to reduce debt it took on to become a privately held company.

The company formerly known as Clear Channel Communications said today that it will operate its businesses as usual while it restructures its finances under Chapter 11 protection to reduce debt by more than $10 billion.

IHeartMedia, which is based in San Antonio, operates 858 broadcast radio stations in more than 150 markets around the U.S. It also runs big live events such as the iHeartRadio Music awards.

Though iHeartMedia has a large online presence and its iHeartRadio app is popular for streaming music, it faces stiff competition from Spotify, Apple Music and other online streaming services. Spotify, which recently filed for an initial public offering, said today that its shares would begin trading on the New York Stock Exchange around April 3.

The reason for iHeartMedia’s financial problems is primarily its massive debt, which it amassed when private equity firms Thomas H. Lee Partners and Bain Capital led a buyback of publicly held shares to take the company private in 2008. IHeartMedia had warned in 2016 that it had reached an impasse with lenders.

IHeartMedia Inc. said its billboard subsidiary, Clear Channel Outdoor, isn’t part of the bankruptcy proceedings.

Comments (1)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature

Scroll Up