A month ago, creditors filed a notice of default for allegedly violating the terms of the loan agreements. A friendly judge in Texas gave iHeart 15 days to resolve the issue, and another 15 day extension. iHeart broke off negotiations and has not satisfied the creditor concerns.
That means the 60 day countdown to default has started. If this isn’t resolved, $12 billion will become immediately due, which will trigger the other $10 billion to also become in default.
The clock is ticking. Meanwhile CBS is moving forward with the idea of doing an IPO to spin off CBS Radio to shareholders.