Do iHeartMedia's Creditors Have A Plan To Avoid Bankruptcy?

Bob Pittman

YESTERDAY (NET NEWS 7/18), ALL ACCESS reported iHEARTMEDIA had filed a Form 8-K with the SEC that it has engaged in discussions with lenders under its Term Loan D and Term Loan E facilities. "Those discussions have most recently included SYMPHONY ASSET MANAGEMENT, EATON VANCE and OPPENHEIMER FUNDS," noted the filing.

Now, THE NEW YORK POST reports, "Several lenders to the BOB PITTMAN-run iHEARTMEDIA have split from FRANKLIN ADVISERS, the media company’s largest creditor, and are close to reaching a restructuring plan with iHEART that would keep America’s biggest radio station owner out of bankruptcy."

The report details that, "the lenders, led by SYMPHONY ASSET MANAGEMENT, will not sign the deal unless FRANKLIN ultimately agrees to the terms," adding, "The lenders’ latest proposal calls for them to gain control of 49% of iHEART — with exiting equity holders retaining 51% of the value."

FRANKLIN reportedly owns $2.3 billion of iHEART's $20 billion in debt.

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