After filing for Chapter 11 bankruptcy on March 14, shares of iHeartMedia Inc. (OTC:IHRTQ) went up approximately 8% the next day.
As one of the largest US radio companies specializing in radio, digital, outdoor, mobile, social, live events, and on-demand entertainment, it had been struggling with over $20 billion in debt. However, the company has reached an agreement with shareholders and financial sponsors to cover $10 billion – check out the press release here.
With over 850 radio stations owned and operated, the company will continue business as usual after filing motions with Bankruptcy court. According to the companies press release, it believes that the cash on hand combined with profits from current ongoing operations will be sufficient enough to fund and support the business until the bankruptcy proceedings.
Chairman and Chief Executive Officer, Bob Pittman, has said that the company has “transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach” and the agreement will allow the company to create “a capital structure that finally matches [it’s] impressive operating business.”
Shares for iHeartMedia Inc have been dropping since the end of November 2017, according to Yahoo Finance, and while the number may be holding steady for now, there is a chance that it will continue to drop.
While the company believes that this will allow for a restructuring, there is no guarantee that it will implement a positive outcome to iHeartMedia Inc. shares.
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