Clear Channel files Chapter 11 (finally)

https://radioink.com/2018/03/15/iheart-lenders-sign-agreement-file-chapter-11/

It is important to note that the description says some of the lenders are on board. It reads like this will be a contested bankruptcy. After the group supporting the plan pins down the details, there is a period during which the dissenting creditors can offer an alternative plan (like John Malone’s plan)

Radio Ink is in serious denial – Entravision reported a 15% drop in quarterly Radio revenue, yet they spin that as a sign of the health of Radio. Entravision is a Spanish language radio and TV operator.

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3 Responses to Clear Channel files Chapter 11 (finally)

  1. CC1s121LrBGT says:

    Good article. Appears to be original content and included a copy of the bankruptcy filing interesting analysis and interesting comments. https://www.zerohedge.com/news/2018-03-15/iheart-media-files-bankruptcy-hoping-wipe-out-10-billion-debt

    One interesting comment was :
    ” dobermangang Thu, 03/15/2018 – 08:03 Permalink

    You can listen to old top 40 countdowns on their site from the 70’s and 80’s. Very cool. No commercials either.

    https://www.iheart.com/live/Classic-American-Top-40-6545/

    • Fred Stiening says:

      I don’t consider zero hedge to be a credible source. Iheart is very complex, by design. The author of this piece suggests that this will be similar to the current Toys ‘R Us bankruptcy, in which all the stores are closing and the company is being liquidated. Iheart will continue to operate, and I see zero chance they will cease operating. That was a reckless assertion by the author of the article.

      Radio still has high operating margins. It is the debt that is strangling them.

      The most interesting thing in the filing is the number of creditors – more than 50,000

  2. Fred Stiening says:

    This is not a prepackaged bankruptcy

    http://www.filingforbankruptcyonline.com/resources/bankruptcy/filing-bankruptcy/prepackaged-bankruptcy-definition-process.htm

    2/3 of the creditors have to agree in advance – that process could not have happened as the plan was not in its final form until last night.

    The issue of Clear Channel Outdoors not being listed in the bankruptcy may or may not be true. Clear Channel has many layers of shell corporations, one of which probably holds the CCO stock. CCO is holding an IOU for over $1 billion that it loaned to Iheart. The debt holders of the CCO debt may likely force the subsidiary into the bankruptcy more directly. I am not a securities law attorney, and this is likely to be the most complicated bankruptcy in American history, by design.

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