iHeartMedia Inc., the company which owns iHeartRadio, is bracing itself for impact as the future looks uncertain for popular radio stations from Z100 in New York City to KIIS FM in Los Angeles.
The biggest broadcast radio chain in the US was once considered a kingpin in the music industry, but now is reportedly in the process of filing for bankruptcy. The official news could come as soon as this weekend, as bankruptcy papers are already in the works according to sources close to the matter.
Over the years on the top, iHeartMedia Inc. has acquired a staggering amount of debt, totaling an estimated $20 billion. Yes, that’s billion with a “B.” Despite a year of negotiations, a complete restructuring plan, and a formal support agreement, it seems iHeart can’t stall its overwhelming financial troubles any longer.
According to Bloomberg, the media company didn’t pay its interest payment as February 1st has come and gone. In addition, two payments on separate bonds have been skipped. Time is almost up for iHeartMedia as it faces the end of an imminent 30-day grace period on the missed interest payment.
There are ongoing talks between billionaire John Malone’s Liberty Media and iHeart’s creditor group, though no bid so far has been enough to win over the creditors. Another saving grace could come in the form of potential synergies between iHeartRadio and SiriusXM radio — while iHeart runs the biggest land-based radio network with 850 stations, Sirius is the largest when it comes to satellite radio.
Read up on the situation more via Bloomberg.