IHeart Secures Overwhelming Creditor Support For Chap 11 Reorg Plan.

Story by Inside Radio

iHeartMedia announced today voting results for its fifth amended joint Chapter 11 plan of reorganization with every class of creditors entitled to vote having voted to approve the plan. In a sign of substantial support, more than 90% of the votes cast by creditors and shareholders who participated in the vote approved the plan, which the company says far exceeds the number of votes needed to confirm the plan.

The voting results show strong support for the plan, which would maximize iHeart’s value, comprehensively address its funded debt obligations and position the company for continued growth and long-term success. Under that plan, iHeart’s funded debt will be reduced by about $10.3 billion—to $5.75 billion. The restructuring would also separate the company’s radio and outdoor advertising businesses.

With significant support from its creditors and an expected confirmation of the plan, the company says it expects to wrap up the restructuring process and emerge from Chapter 11 in early 2019.

Final voting results will be filed with the U.S. Bankruptcy Court in Houston before a Dec. 11 hearing to confirm the plan.

Kirkland & Ellis is serving as legal counsel to iHeartMedia, Moelis & Company is serving as the company’s investment banker, and Alvarez & Marsal is serving as the company’s financial advisor.