iHeartMedia, the United States’ largest owner of radio stations officially filed for bankruptcy last week. The company announced it reached an agreement with debtors whom it owes over $11 billion. Under the terms of that agreement 94% of the company’s stock will be transferred to senior creditors.
But the financial troubles aren’t stopping the company from paying out millions of dollars to it’s top executives. What makes matters worse is iHeartRadio reportedly owes artists over $16 million.
But unfortunately, trade credits (which cover the money owed to artists) aren’t guaranteed to be paid out.
According to Digital Music News:
They’re “last in line for money recovered in a bankruptcy restructuring.”
SoundExchange, for example, has yet to receive nearly $6.3 million in licensing fees. ASCAP and BMI, the two largest performance rights organizations in America, are collectively owned almost $3 million.
iHeartMedia also owes Warner Music Group slightly over $3.9 million in royalty fees.
Unlike the artists whose music was played on radio stations throughout the country, it seems as though executives will still be fully compensated.
Robert Pittman, the company’s CEO who was in charge while the radio giant crashed and burned, will get almost $10 million. The COO of the company will make $5.3 million while the company’s General Council walks away with almost $1 million.
Unfortunately, the artists are the ones who come out on bottom.