Court OKs iHeart Reorganization Plan
• iHeartMedia, Inc. announced that the United States Bankruptcy Court for the Southern District of Texas has confirmed the Company’s Plan of Reorganization. The Company expects to complete its restructuring process in the first half of 2019.
Under the terms of the Plan, iHeartMedia will complete a comprehensive balance sheet restructuring that will reduce its debt from $16.1 billion to $5.75 billion and will separate Clear Channel Outdoor Holdings, Inc. from iHeartMedia, creating two independent public companies. With the confirmation of the Plan, the Company expects the Chapter 11 process to be completely finished within the first half of 2019, subject to completion of certain steps related to the separation of Clear Channel Outdoor Holdings, Inc., FCC registration and satisfaction of other customary conditions.
Commenting on the court’s decision, Bob Pittman (left), Chairman and Chief Executive Officer of iHeartMedia, Inc., said, in part, “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.” He 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 debtholders who will become our owners, our advertising partners and our operating team.”
Following iHeartMedia’s completion of the restructuring process, Pittman and iHeartMedia President/COO/CFO Rich Bressler will remain in their respective roles and have their contracts extended by four years.
