IHEARTMEDIA SET TO BOUNCE BACK FROM BANKRUPTCY AS CEO BOB PITTMAN INKS NEW FOUR-YEAR DEAL
US broadcast giant iHeartMedia, owner of iHeartRadio, is on the road to recovery following its recent financial troubles.
The company has today announced that the United States Bankruptcy Court for the Southern District of Texas has confirmed its Plan of Reorganization, out of which iHeart expects to complete its restructuring process in the first half of 2019.
Under the terms of the plan, iHeartMedia will complete a balance sheet restructuring which will reduce its debt from $16.1 billion to $5.75 billion and will separate Clear Channel Outdoor Holdings, Inc. from iHeartMedia, creating two independent public companies.
Following iHeartMedia’s completion of the restructuring process, Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc., and Rich Bressler, President, Chief Operating Officer and Chief Financial Officer of iHeartMedia, Inc., will remain in their respective roles, and have extended their contracts by four years.
iHeartMedia, which runs more than 850 live broadcast stations, claims to reach nine out of 10 Americans every month – with a total reach of quarter of a billion monthly listeners.
The company filed for Chapter 11 bankruptcy protection in March last year, after buckling under the weight of a $20bn debt – a hangover from its 2008 leveraged buyout.
“iHeartMedia is America’s number one audio company, with unparalleled multi-platform capabilities across broadcast radio, podcasts, influencers, live events, social marketing, digital and data that uniquely serve the needs of digital and traditional marketers and a consumer reach in the U.S. greater than any other media outlet,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc.
“We are delighted to reach this significant milestone in our restructuring process, which will give us a new capital structure that matches the strong operating performance of our business. iHeartMedia’s unique place in the advertising world perfectly positions us to take advantage of the renaissance underway in audio.”
“Our ability to advance through the restructuring process this smoothly is a testament to both the strength of our operating business and the strong support of our stakeholders, including our debtholders who will become our owners, our advertising partners and our operating team,” Pittman continued.
“We have accomplished so much in the past several months alone – from major acquisitions such as HowStuffWorks, which has firmly positioned the company as the #1 commercial podcast publisher globally, and Jelli, the pioneering technology foundation for the data-infused programmatic buying and selling of broadcast radio, to the continued development and implementation of transformative new technology. We will continue to work together to invest in and grow our innovative and exciting services, cutting-edge products and great programming for decades to come.”
Kirkland & Ellis LLP is serving as legal counsel to iHeartMedia, Moelis & Company is serving as the Company’s investment banker, and Alvarez & Marsal is serving as the Company’s financial advisor.
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