iHeartMedia, corporate owners of 855 radio stations (including Power 105, home of The Breakfast Club), is reportedly preparing to enter Chapter 11 bankruptcy. The company also owns multiple popular streaming channels across the U.S. Sources said the company may make the filings as early as today (Monday March 5, 2018).
The company lost $300 million in 2016. It also had $1.8 billion in debt payments that year. However, last week SiriusXM – owned by Liberty Media – offered to help the company through it’s bankruptcy by giving them more than $1 billion for a major stake in the company. The offer was rejected but apparently talks are ongoing.
According to HypeBot:
Liberty has also bought a substantial position in iHeart debt and sees synergies between iHeart and SiriusXM radio, according to Bloomberg.
The troubles for the company began back in 2008 when two private equity firms bought Clear Channel – the company that owns iHeart – and financed the deal, worth $20 billion, with highly leveraged loans.
At press time, there was no news that the bankruptcy papers had been filed yet.