iHeartMedia Skips Two More Interest Payments & Approves New Bonuses For Top Execs
After electing to not make a $106 million interest payment on February 1 which triggered the 30 day clock on default and bankruptcy restructuring, iHeartMedia has elected to not make two more interest payments due today.
iHeart will not make the the payment for the $59.1 million with respect to its outstanding 11.25% Priority Guarantee Notes due 2021 and $78.8 million with respect to its outstanding 9.0% Priority Guarantee Notes due 2021. Just like last month’s skipped payment iHeart can prevent default by making the payments within the next 30 days, however should they default on last month’s payment first that would be moot. In its SEC filing, The Board of Directors of iHeartCommunications stated they elected not to make the payments as active discussions continue among its lenders, noteholders, and financial sponsors regarding a comprehensive debt restructuring are taking place.
In a second SEC filing, iHeartMedia revealed it has approved a new bonus structure for three top executives.
Chairman & CEO Bob Pittman will receive a target bonus of $2,325,000 per quarter and received accelerated payment of his $500,000 bonuses from 2016 and 2017.
COO/CFO Rich Bressler will receive a target bonus of $1,325,000 per quarter and also get accelerated payment of his $500,000 bonuses from 2016 and 2017.
EVP/General Counsel/Secretary Robert Walls is now eligible for a quarterly bonus of $225,000.
All three would be require to repay the after tax value of the bonuses if he were to be terminated for cause or voluntarily resign without good reason before March 31, 2019