While iHeartsMedia’s stakeholders attempt to restructure and balance the company’s enormous debt, the company is still facing an uphill battle. By replacing loans with new facilities and bonds Thomas H. Lee and Bain capital hope to shave off as much as $14 billion over the coming years.
The problem is the group of lenders decided to oppose the proposed overhaul of $20 billion in debt leaving the managing members with few options and forcing the entity to consider filing for bankruptcy.
“Bondholders and creditors don’t feel they’ve been offered enough. The company’s behavior has been extremely aggressive, and may have resulted in some hurt feelings and emotions that may be further complicating this.”
iHeart recent woes are nothing new but they finally admit the long to goals may not be as successful as they hoped they would be.
“Management anticipates that our financial statements to be issued for the three months ended March 31, 2017, will include disclosure indicating there will be substantial doubt as to our ability to continue as a going concern for a period of 12 months following the date the first quarter 2017 financial statements are issued.”
Currently, stock prices remain down about 12.73% point from its initial debut price. With a quarter billion listeners iHeartMedia has some very hard decisions to make in the coming months.