In a press release, iHeartMedia announced that it has filed for bankruptcy. The press release said that day-to-day operations will continue as usual during the restructuring process.
On March 14, 2018, iHeartMedia announced that it reached an agreement in principle with stakeholders of more than $10 billion of its outstanding debt and its financial sponsors. The agreement reflects widespread support for a comprehensive balance sheet restructuring that will reduce iHeartMedia’s debt by more than $10 billion.
To implement the balance sheet restructuring contemplated by the agreement, iHeartMedia and certain of its subsidiaries, including iHeartCommunications, Inc., have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Court for the Southern District of Texas, Houston Division. Clear Channel Outdoor Holdings, Inc., and its subsidiaries did not commence Chapter 11 proceedings.
The press release says that iHeartMedia filed with the Bankruptcy Court a series of customary motions seeking to maintain business-as-usual operations and uphold its commitments to its valued employees and other stakeholders during the process. iHeartMedia believes that its cash on hand, together with cash generated from ongoing operations, will be sufficient to fund and support the business during the Chapter 11 proceedings.