US radio giant iHeartMedia is on its way out of bankruptcy.
The United States Bankruptcy Court for the Southern District of Texas has approved the company’s reorganisation plan.
iHeartMedia expects to complete a restructuring in the first half of 2019 that would end the Chapter 11 process. Major labels were among the creditors.
Under the terms of the plan, iHeartMedia will complete a comprehensive restructuring that will reduce its debt from $16.1 billion (£12.3bn) to $5.75bn (£4.4bn) and will separate Clear Channel Outdoor Holdings from iHeartMedia.
“iHeartMedia is America’s number one audio company, with unparalleled multi-platform capabilities across broadcast radio, podcasts, influencers, live events, social marketing, digital and data that uniquely serve the needs of digital and traditional marketers and a consumer reach in the US greater than any other media outlet,” said Bob Pittman, chairman and CEO. “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. iHeartMedia’s unique place in the advertising world perfectly positions us to take advantage of the renaissance underway in audio.”
Following iHeartMedia’s completion of the restructuring process, Pittman and Rich Bressler, president, COO and CFO, will remain in their respective roles and have extended their contracts by four years.
Pittman added: “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 debt holders who will become our owners, our advertising partners and our operating team.”
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