iHeartMedia misses bond payment, places 30-day deadline on possible bankruptcy
San Antonio-based iHeartMedia Inc. failed to make a $106 million bond payment due Thursday, giving itself 30 days to work out an agreement with investors to restructure its debt or face bankruptcy.
The radio and billboard giant said it made a conscious decision not to make the payment “as active discussions continue among its lenders, noteholders, and financial sponsors regarding a comprehensive debt restructuring.”
The company said the move won’t automatically trigger a default on its bonds as it used a grace period that gives it 30 more days to make the interest payment.
The company’s been teetering on the edge of insolvency for much of the last year. It launched an offer almost a year ago — on March 15 — to try to restructure $14.6 billion of its more than $20 billion in debt by exchanging it for bonds with longer maturities and higher yields.
Read more: http://www.mysanantonio.com/business/local/article/iHeart-misses-bond-payment-takes-another-step-to-12542717.php
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