Another Day; Another Extension For iHeartMedia & Creditors

iHeartMedia iHeart iHeartCommunicationsiHeartMedia and its creditors have agreed to another 24 hour extension as they seek to finalize a restructuring agreement.

As previously disclosed, iHeartCommunications has been engaged in ongoing discussions with its stakeholders with respect to the restructuring of its capital structure. In connection with such discussions, iHeartMedia and iHeartCommunications have been working on a proposed draft restructuring support agreement and related proposed draft restructuring term sheet with advisors to groups of iHeartCommunications’
noteholders, lenders and equity holders.

Update 3/13: iHeartMedia has agreed to a one day extension with its creditors through 11:59pm tonight.

The extension follows a revised term sheet being distributed to creditors as iHeart seeks to reach a deal for a smooth Chapter 11 bankruptcy restructuring.

Original Report 3/8: iHeartMedia has extended its forbearance agreement with its debtholders through 11:59pm on Monday, March 12.

The agreement comes as the company continues to negotiate a deal to satisfy all debt holders and potentially negotiate a deal with suitor Liberty Media and its SiriusXM.

The extension could also allow the company to host its iHeartRadio Music Awards this weekend without the specter of a just filed bankruptcy.

As previously disclosed, on March 4, 2018, iHeartCommunications, Inc. (“iHeartCommunications”), an indirect subsidiary of iHeartMedia, Inc. (“iHeartMedia”), and certain lenders party thereto (the “Consenting Lenders”) entered into a Forbearance Agreement (the “Forbearance Agreement”), with respect to the Credit Agreement, dated as of May 13, 2008, as amended and restated as of February 23, 2011 (as further amended or supplemented from time to time, the “Credit Agreement”), among iHeartCommunications, as the parent borrower, the subsidiary co-borrowers and foreign subsidiary revolving borrowers party thereto, iHeartMedia Capital I, LLC, as holdings, Citibank, N.A., as administrative agent, swing line lender and letter of credit issuer, and the other the lenders from time to time party thereto.

On March 7, 2018, iHeartMedia and the Consenting Lenders extended the term of the Forbearance Agreement to the earliest to occur of (i) March 12, 2018 at 11:59 p.m. Central time and (ii) an event of default under the Credit Agreement other than those that resulted in the entry into the Forbearance Agreement.

Original Report 3/5: iHeartMedia has agreed to a deal with its lenders to temporarily forbear from forcing the company into default.

The move which comes as the company seeks to reach a settlement with all of its creditors and debtholders gives the company until 11:59pm central time on Wednesday, March 7 to agree to terms on a bankruptcy filing or default on the payment of the 14.00%
Senior Notes due 2021 that was originally due on February 1, 2018 after the 30 day grace period originally expired over the weekend.

The company as also issued the currently circulating Chapter 11 bankruptcy term sheet it is currently negotiating with lenders in the SEC filing.

Item 1.01. Entry into a Material Definitive Agreement.

On March 4, 2018, iHeartCommunications, Inc. (“iHeartCommunications”), an indirect subsidiary of iHeartMedia, Inc. (“iHeartMedia”), and certain lenders party thereto (the “Consenting Lenders”) entered into a Forbearance Agreement (the “Forbearance Agreement”), with respect to the Credit Agreement, dated as of May 13, 2008, as amended and restated as of February 23, 2011 (as further amended or supplemented from time to time, the “Credit Agreement”), among iHeartCommunications, as the parent borrower, the subsidiary co-borrowers and foreign subsidiary revolving borrowers party thereto, iHeartMedia Capital I, LLC, as a guarantor, Citibank, N.A., as administrative agent, swing line lender and letter of credit issuer, and the other lenders from time to time party thereto. The Consenting Lenders constitute the lenders required under the Credit Agreement to grant a forbearance.

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 an 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 (i) March 7, 2018 at 11:59 p.m. Central time and (ii) an event of default under the Credit Agreement other than those that resulted in the entry into the Forbearance Agreement (the “Forbearance Period”).

Pursuant to the Forbearance Agreement, iHeartCommunications agreed to not make payments on account of any indebtedness or obligations under the indentures governing iHeartCommunications’ legacy notes and iHeartCommunications’ 14.00% Senior Notes due 2021 during the Forbearance Period.

Share This Post

Lance Venta is the Owner and Publisher of RadioInsight.com and a consultant for RadioBB Networks specializing in integration of radio and the internet. Lance has two decades of experience tracking the audio industry and its use of digital platforms.

2 Comments


  1. Could a scenario still exist where a deal falls apart, leaving the future of iHeart extremely uncertain??


  2. This is a restructuring bankruptcy… not a liquidation bankruptcy. Even if a deal fell apart, they’d have to start over on another deal to replace it. (And that is not going to happen, what with Liberty Media buying a lot of iHeart debt as leverage.)

Leave a Reply