Report: iHeartMedia's Largest Creditor Working On Restructuring Deal

Resturcturing Deal?

Is iHEARTMEDIA's largest creditor ready to deal? The NEW YORK POST reports that FRANKLIN RESOURCES is preparing a restructuring plan with investment bank PJT PARTNERS that would let iHEARTMEDIA avoid bankruptcy in exchange for concessions on a majority equity stake and cash guarantees.

FRANKLIN holds $2.3 billion of the $20 billion of debt iHEART is carrying and has rejected the broadcasting company's previous debt-for-equity swap proposals; the POST says its sources indicate FRANKLIN is looking to take a majority stake in the operation and issue new debt but would leave the company intact and BOB PITTMAN in the Chairman/CEO position.

A separate group of creditors led by SYMPHONY ASSET MANAGEMENT made its own proposal last month that would have given that group 49% of the company and the equity holders 51%, and would have issued $500 milllion in new priority debt, but FRANKLIN's agreement to that arrangement was reportedly a prerequisite to signing that deal.

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