iHeart Buys Some Extra Time
• iHeartMedia has arranged to bank a few valuable extra days to get its financial house into something resembling order and restructure its $20 billion in debt — in an 8-K filing with the SEC dated Sunday, March 3, the company filed a Forbearance Agreement giving iHeart a new deadline of Wednesday, March 7 to finalize terms with its creditors, lenders and equity holders.
The lengthy filing reads, in part, “Pursuant to the Forbearance Agreement, the Consenting Lenders agreed to temporarily forbear from accelerating the obligations under the Credit Agreement or otherwise exercising any rights or remedies thereunder as a result of any actual or prospective event of default under Section 8.01(e) of the Credit Agreement resulting from iHeartCommunications’ failure to make a [$106 million] interest payment beyond the applicable grace period with respect to its 14.00% Senior Notes due 2021 that was originally due on February 1, 2018.”
The forbearance became effective upon all parties’ execution thereof and will terminate immediately and automatically upon the earliest to occur of March 7, 2018 at 11:59pm CT (bolding added for emphasis) and in event of default under the Credit Agreement other than those that resulted in the entry into the Forbearance Agreement.”
Attached to the filing was the latest version of iHeartMedia’s proposed restructuring plan, which includes the aforementioned spin-off of Clear Channel Outdoor, $5.75 billion in new secured debt and other goodies. And now we wait… some more.
