The two biggest owners of radio stations in America have both filed for bankruptcy.

iHeartMedia, the operator of 850 stations across the United States, submitted the paperwork on Thursday. Its rival Cumulus, the operator of 445 stations, did the same thing a few months ago.

The two cases are unique, but both companies face similar challenges in a troubled industry. And both companies are trying to restructure their debt.

iHeartMedia (IHRT) has been crippled by piles of debt for many years. It has been struggling to get out from under a massive debt load it took on as part of a leveraged buyout of billboard company Clear Channel Outdoor in 2008.

"The heavy debt burden became unsustainable during the persistent long-term secular decline of the radio broadcasting business," analyst Sharon Bonelli of Fitch Ratings said in an email.

That's why iHeart has been negotiating with creditors and investors for months. On Thursday it announced an agreement to restructure more than $10 billion in debt, about half of what it owes.

"The agreement we announced today ... allows us to definitively address the more than $20 billion in debt that has burdened our capital structure," iHeartMedia CEO Bob Pittman said in a statement.

The company said it has enough cash to support it through Chapter 11 proceedings.

The San Antonio-based company used to be called Clear Channel. It bills itself as a multi-platform media company, but it's best known for operating a far-flung network of radio stations.

It also operates iHeartRadio's music streaming service, a popular concert business, and a majority stake in Clear Channel Outdoor.

The company has struggled with falling revenue. It was down in 2015, barely grew in 2016 and fell in the first nine months of 2017. This has come amid declines in the radio ad business and growing competition from streaming rivals like Spotify and Pandora.

"We believe there is still inherent value in the traditional radio broadcasting sector, but balance sheets will continue to need to be right-sized to support the underlying economics of the industry," Bonelli said.

Cumulus is also going through Chapter 11 right now.

The bankruptcy filing comes as Spotify prepares for its much anticipated listing on the New York Stock Exchange.

Updated: This article has been updated with more detailed information on iHeartRadio's annual revenue in recent years.</s>iHeartMedia is one of the last titans of the radio industry, with more than 850 AM and FM radio stations under its belt. The company's iHeartRadio mobile app, which allows users to listen to all the company's stations over an internet connection, currently has over 50 million installs on the Play Store. The company yesterday filed for Chapter 11 bankruptcy, as part of an effort to restructure its debt.

According to CNBC, iHeartMedia is struggling with $20 billion of debt and falling revenue from its radio stations. Liberty Media, owner of Sirius XM, has expressed interest in buying a 40% stake of the restructured company for $1.16 million. Some of iHeartMedia's subsidiaries, like Clear Channel Outdoor, are not part of the bankruptcy process.

The company says it has enough cash on hand to continue normal operations while proceedings continue. You can find more information at the source link below.</s>The largest U.S. radio station owner, iHeartMedia, has filed for Chapter 11 bankruptcy as it "struggles with $20 billion in debt and falling revenue at its 858 radio stations," reports Reuters. The company has reportedly reached an agreement with holders of more than $10 billion of its outstanding debt for a balance sheet restructuring, which will reduce its debt by more than $10 billion. From the report:</s>The bankruptcy is the culmination of iHeartMedia’s yearslong dance with its creditors; a final phase, long expected by analysts, began last month when the company skipped a $106 million interest payment.

It is also the latest and most high-profile shift in the tumultuous radio business, which has struggled to retain advertising dollars and compete with streaming services like Spotify and Pandora.

Cumulus Media, iHeart’s closest competitor, with 445 stations, declared bankruptcy four months ago. Last year, CBS Radio, after announcing its intention to exit the business, merged its stations with the much smaller Entercom Communications.

IHeart’s bankruptcy filing was announced on the same day that Spotify held an investor presentation in advance of its public listing on the New York Stock Exchange.

Annual advertising, radio’s chief revenue source, has hovered around $16 billion for years, according to a report last year by the accounting firm PwC. By 2021, the report projected, that figure, for terrestrial broadcast stations, would reach only $16.6 billion, with a 10-year compounded annual growth rate of just 0.425 percent.

IHeartMedia has maintained that its radio stations remain popular and vital even as it has introduced apps and negotiated new licensing deals intended to control its royalty payments online.

The company’s terrestrial stations, it says, reach 271 million people each month, and in many markets it operates multiple outlets. There are eight iHeart stations in Los Angeles, for example, and six in New York, including Z100, a pop powerhouse.

Still, iHeartMedia has moved aggressively into the online market, renaming itself four years ago after a music app that its disc jockeys promote relentlessly on the air.

“We have transformed a traditional broadcast radio company into a true 21st-century multiplatform, data-driven, digitally focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms,” Robert W. Pittman, the company’s chief executive, said in a statement announcing the bankruptcy filing.

Lance Vitanza, an analyst at Cowen, said that iHeartMedia had done better than most radio companies in expanding its audience and adapting to new technologies, but that debt had weighed it down — a burden that could find relief through the bankruptcy process.

“Ultimately, when they come out of bankruptcy, they will be in a much better position,” Mr. Vitanza said. “We expect them to be able to focus their resources on growing their business rather than on debt service, which is what they’ve had to do for the last 10 years.”</s>REUTERS: IHeartMedia Inc filed for Chapter 11 bankruptcy on Thursday as the largest U.S. radio station owner reached an in-principle agreement with creditors to restructure its overwhelming debt load.

The company, which filed for bankruptcy along with some of its units, said it ‍reached the agreement with holders of more than US$10 billion of its outstanding debt for a balance sheet restructuring, which would reduce its debt by more than US$10 billion.

IHeartMedia, which has struggled with US$20 billion of debt and falling revenue at its 858 radio stations, said cash on hand and cash generated from ongoing operations will be sufficient to fund the business during the bankruptcy process.

"The agreement ... is a significant accomplishment, as it allows us to definitively address the more than US$20 billion in debt that has burdened our capital structure," Chief Executive Bob Pittman said.

The filing comes after John Malone's Liberty Media Corp proposed on Feb. 26 a deal to buy a 40 percent stake in a restructured iHeartMedia for US$1.16 billion, uniting the company with Liberty's Sirius XM Holdings Inc satellite radio service.

Clear Channel Outdoor Holdings Inc, a subsidiary of iHeartMedia and one of the world's largest billboard companies, and its units did not commence Chapter 11 proceedings.

IHeartMedia skipped a US$106 million interest payment on Feb. 1, triggering a 30-day grace period during which the company has tried to hammer out a deal with it bondholders.

The company disclosed on Monday it was still exchanging proposals with its creditors, but had yet to reach an agreement.

Its most recent proposal would have given holders of secured loans, who are owed nearly US$13 billion, about US$5.6 billion in new debt and 94 percent of the equity in a reorganized iHeartMedia. These creditors also would have received iHeartMedia's 89.5 percent stake in Clear Channel Outdoor Holdings.

Bain Capital LLC and Thomas H. Lee Partners LP control 68 percent of the voting stock of iHeartMedia, according to the company's most recent annual report.

The private equity firms led a US$17.9 billion leveraged buyout of what was then Clear Channel Communications Inc in 2008, just as the buyout boom was fading and as the signs of the financial crisis began to emerge.

Shares of iHeartMedia lost three-quarters of their value in the second half of 2015 and have never recovered since then. On Monday, the pink sheet stock closed at 48 cents.

IHeartMedia traces its roots to the 1972 purchase of KEEZ-FM in San Antonio, Texas, where it is currently headquartered. It also produces syndicated radio programs that feature "American Idol" host Ryan Seacrest and political personalities Rush Limbaugh and Sean Hannity.

The company had 14,300 employees at the end of 2016, according to its most recent annual report.</s>The iHeartMedia billboard is seen atop a building in the Bronx in New York March 15, 2018. ― Reuters picLOS ANGELES, March 16 ― IHeartMedia Inc filed for Chapter 11 bankruptcy yesterday as the largest US radio station owner reached an agreement with creditors to more than halve its US$20 billion (RM78.5 billion) in debt.

The company said the agreement it ‍reached with holders of more than US$10 billion of its outstanding debt would restructure its balance sheet by transferring 94 per cent of the stock in the reorganised company to its lenders.

IHeartMedia has struggled with debt that was taken on to finance a US$17.9 billion leveraged buyout, or LBO, in 2008 of what was then Clear Channel Communications Inc. That deal led by Bain Capital LLC and Thomas H. Lee Partners LP closed just as a financial crisis began to undermine the US economy.

In the years that followed, the operator of 849 radio stations has faced intensifying competition for advertisers and listeners from internet platforms such as music streaming services.

“The LBO put this massive debt on the balance sheet that the company was supposed to grow into,” a lawyer for iHeartMedia told US Bankruptcy Judge Marvin Isgur at a hearing in Houston on Thursday. “We’re here to right-size the balance sheet.”

The company traces its roots to the 1972 purchase of KEEZ-FM in San Antonio, Texas, where it is currently headquartered. It said it would fund the business and bankruptcy process from cash on hand and cash generated from operations.

It said in a statement it was seeking to maintain business as usual during the bankruptcy, and to “uphold its commitments” to its staff. It employs 12,400 people, according to court records.

The filing comes less than four months after Cumulus Media Inc, which operates 445 U.S. radio stations, filed for Chapter 11.

IHeartMedia had US$3.58 billion in revenue in 2017 and reaches 271 million radio listeners, which the company says gives it a wider reach than Alphabet Inc's Google. The company also sells advertising on digital platforms, at live concerts and on syndicated programmes featuring personalities such as Rush Limbaugh and American Idol host Ryan Seacrest.

However, the company spent US$1.4 billion on interest payments last year and has more than $8 billion in debt maturing by the end of 2019.

The company's lawyers told the court iHeartMedia was on the cusp of having enough support from creditors to impose its plan on hold-outs.

Under the company's debt-cutting deal, holders of secured loans and secured notes, who are owed nearly US$13 billion, agreed to accept about US$5.6 billion in new debt and 94 per cent of the equity in a reorganized iHeartMedia, according to court documents.

These creditors also will receive iHeartMedia's 89.5 per cent stake in Clear Channel Outdoor Holdings Inc, the world's largest billboard company, which did not file for bankruptcy.

IHeartMedia also proposed that junior debt holders, who are owed more than US$2 billion, will receive their pro rata share of 5 per cent of the equity in the reorganized company and US$200 million in new secured notes.

Existing shareholders would receive 1 per cent of the stock in the reorganised company, according to court documents.

IHeartMedia faces a legal challenge from a group, led by investment fund Angelo, Gordon & Co, which holds US$190 million of junior debt, according to the company.

Their lawyer said at yesterday's hearing they plan to file a lawsuit to challenge the contention that they are low-priority unsecured creditors, and Isgur said he wanted a hearing on that dispute before April.

IHeartMedia has drawn interest from John Malone's Liberty Media Corp, which proposed on February 26 a deal to buy a 40 per cent stake in a restructured iHeartMedia for US$1.16 billion. The deal would unite iHeartMedia with Liberty's Sirius XM Holdings Inc satellite radio service. ― Reuters</s>iHeartMedia, the largest radio broadcaster in the United States, has filed for Chapter 11 bankruptcy — owing $20 billion in debt.

According to the Hollywood Reporter, “iHeart said it had ‍reached an agreement with the holders of more than $10 billion of the company’s outstanding debt for a balance sheet restructuring, which will reduce its debt by more than $10 billion.”

“In February, iHeart missed interest payments on its debt as well as two sets of bond payments making bankruptcy all but inevitable,” they explained, adding that, “A last minute deal with Liberty Media, the owner of SiriusXM Radio, that would have seen the company controlled by media mogul John Malone and inject $1.16 billion into the group also fell through.”

jHeartMedia Chairman and CEO Bob Pittman announced the details of the company’s debt agreements in a statement, Wednesday.

“iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters. We have transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms, and the iHeartRadio master brand that ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers,” Pittman declared. “The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure. Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”

In a press release, iHeartMedia also further explained the bankruptcy.

“To implement the balance sheet restructuring contemplated by the agreement in principle, iHeartMedia and certain of its subsidiaries, including iHeartCommunications, Inc., have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. Clear Channel Outdoor Holdings, Inc. and its subsidiaries did not commence Chapter 11 proceedings,” iHeartMedia proclaimed. “The Company has filed with the Bankruptcy Court a series of customary motions seeking to maintain business-as-usual operations and uphold its commitments to its valued employees and other stakeholders during the process. These ‘first day’ motions, which the Company expects to be granted in short order, will help facilitate a smooth transition into Chapter 11. ”

“iHeartMedia believes that its cash on hand, together with cash generated from ongoing operations, will be sufficient to fund and support the business during the Chapter 11 proceedings,” they concluded.</s>IHeartMedia Inc., the biggest U.S. radio broadcaster, filed for bankruptcy with a plan to ease its debt load of more than $20 billion after almost a year of fractious negotiations with creditors.

The company, with about 850 radio stations and 17,000 employees worldwide, filed for Chapter 11 protection on Wednesday in Houston to keep operating as it tries to work out a way to turn the business around and pay its debts.

After trying to ink a deal with creditors since last March, the company said in a statement that it reached an agreement in principle with investors holding more than $10 billion of its debt, along with its private equity owners. The pact, intended to give the company a framework for a speedier reorganization, would cut iHeart’s debt by more than $10 billion, it said.

Among the company’s creditors is billionaire John Malone’s Liberty Media, which controls satellite radio giant SiriusXM. Liberty Media accumulated a position in iHeart’s debt in recent months in an effort to grab a stake in the company’s radio business.

About 265 million people in the U.S. still tune in to iHeart’s stations at least once a month, but newer media such as Spotify’s streaming service and SiriusXM’s satellite broadcasts have cut into the audience and put a damper on sales. IHeart, led by Chief Executive Officer Robert Pittman, countered with its own streaming services and a live-events business offering concerts and awards shows.

The debt has been a drag on those efforts, and iHeart hasn’t posted an annual profit over the past decade. Much of the borrowing has its roots in the leveraged buyout staged by Bain Capital and Thomas H. Lee Partners in 2008.

IHeart’s traditional businesses—the radio stations and the Clear Channel Outdoor billboard unit—still contribute the bulk of its revenue. The Chapter 11 filing didn’t include the billboard unit.

The bankruptcy caps a yearlong standoff with lenders and bondholders on its latest debt-cutting plan. The deadline was extended more than 20 times as negotiators exchanged proposals and iHeart sweetened the terms. The current attempt at an accord followed at least a dozen debt revisions over the past decade.

Equity stakes had been a key sticking point in recent talks, with creditors demanding almost all of iHeart and 100% of its healthy Clear Channel unit. Malone’s Liberty Media sought to break the logjam late in February by offering new capital and loans in return for a 40 percent stake. JCDecaux SA, the world’s biggest outdoor-advertising agency, also has expressed interest in buying some of Clear Channel’s assets.</s>IHeartMedia, one of the world’s largest radio companies and the operator of six stations in the Youngstown market, has filed for bankruptcy.

In a statement released Thursday, the company said it will operate all of its stations as usual while it restructures its debt. In Youngstown, the company owns NewsRadio 570-AM WKBN (news and talk); Mix 98.9-FM (adult contemporary); 106.1-FM The Bull (country); 95.9 Kiss-FM (hit music); 93.3-FM The Wolf (classic rock); and the SportsAnimal WNIO-1390 AM(sports talk).

IHeartMedia’s Youngstown-area office is on South Avenue in Boardman.

The company formerly known as Clear Channel Communications filed for Chapter 11 protection as part of an agreement with its lenders to reduce $10 billion of its more than $20 billion in debt.

IHeartMedia operates 858 broadcast radio stations in more than 150 markets around the U.S. It also runs major live events such as the iHeartRadio Music awards and concert.

Thursday’s filing was made in U.S. Bankruptcy Court in Houston. The company is based in San Antonio.

According to its website, iHeartMedia has the largest reach of any radio or television outlet in America with more than a quarter of a billion listeners in the U.S. each month.

Though iHeartMedia has a large online presence and its iHeartRadio app is popular for streaming music, it faces stiff competition from Spotify, Apple Music and other online streaming services.

Read more about the case in Friday's Vindicator or on Vindy.com.</s>iHeartMedia, Inc. has entered Chapter 11 in an attempt to restructure its debt and business holdings, the company announced Thursday.

The nation's largest radio station owner runs seven stations in San Diego.

The company's statement said day-to-day operations will continue as usual.

iHeart has struggled with $20 billion of debt and falling revenue at its 858 radio stations, CNBC reported.

The business website reports that iHeart was able to reach an agreement with creditors that would reduce its debt by more than $10 billion.

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The largest U.S. broadcaster, iHeartMedia, owner of 850 radio stations, files for chapter 11 bankruptcy after accumulating US$20 billion in debt.