IHeartMedia files for bankruptcy protection
Company missed $106M debt payment last month
The nation’s largest broadcast radio company filed for federal bankruptcy protection on Thursday, the culmination of weeks of maneuvering and years of failing financial operations.
iHeartMedia filed for Chapter 11 bankruptcy in the Southern District of Texas bankruptcy court.
The move came just over one month after the company missed a $106 million debt payment, which triggered a 30-day grace period and multiple extensions for talks with creditors.
iHeartMedia owns 855 radio stations.
Its holdings including six stations in Milwaukee: WRIT-FM (95.7), WISNAM (1130), WMIL-FM (106.1), WKKVFM (100.7), WOKY-AM (920) and WRNW-FM (97.3). WRIT and WISN ranked first and second in Milwaukee in Nielsen Audio’s most recent audience-share tallies.
The company had been saddled
with over $20 billion in debt.
Filings with the Securities and Exchange Commission indicated that iHeartMedia would reduce those obligations to about $10 billion under a deal worked out with its creditors.
The bankruptcy highlights the financial struggles facing the radio industry.
The nation’s second largest radio chain, Cumulus Media, has faced similar challenges. Listeners increasingly choose other mediums, such as online streaming, over terrestrial radio.
After iHeart missed its debt payment in February, Liberty Media made a $1.16 billion offer for a 40% stake in the company.
As negotiations between the two companies progressed, Liberty purchased $400 million of iHeart’s debt.
Liberty Media counts SiriusXM, Formula One auto racing and the Atlanta Braves baseball team among its assets.