With Court OK, IHeart To ‘Completely’ Emerge From Chap 11 In 1st Half.

Story by Inside Radio

In a crucial milestone toward exiting bankruptcy, iHeartMedia on Tuesday (Jan. 22) received the greenlight from United States Bankruptcy Court for its comprehensive financial reorganization plan. With court approval now in hand, iHeart says it expects the Chapter 11 process “to be completely finished within the first half of 2019,” subject to completing steps that will separate it from sister company Clear Channel Outdoor Holdings (CCOH) and satisfying FCC registration and other customary conditions.

“We are delighted to reach this significant milestone in our restructuring process, which will give us a new capital structure that matches the strong operating performance of our business,” CEO Bob Pittman said in a press release. “iHeartMedia’s unique place in the advertising world perfectly positions us to take advantage of the renaissance underway in audio.”

The company filed for Chapter 11 on March 14, 2018, after reaching an agreement in principle with the majority of its creditors and financial sponsors. “Our ability to advance through the restructuring process this smoothly is a testament to both the strength of our operating business and the strong support of our stakeholders, including our debtholders who will become our owners, our advertising partners and our operating team,” Pittman said in a press release.

Under the terms of the plan, iHeart will reduce its debt from $16.1 billion to $5.75 billion and will separate CCOH from iHeartMedia, creating two independent public companies.