iHeart Media Financially Bankrupt

Source: wsj.com

iHeart is the largest radio network in the US, they're in the midst of debt restructuring and their latest proposal was rejected. The second largest media company, Cumulus Media has already filed for bankruptcy recently. A large group of bond and loan holders led by Franklin Resources rejected iHeart's proposal. iHeart offered to cut the equity in both the iHeart radio business and their stake in Clear Channel by more than 87% but the Franklin group demands that they surrender 95% of the equity in iHeart and all of their equity position in Clear Channel. As a side note, bain capital is an equity owner in iHeart. If you are not informed about bain capital, you might want to do a little research.

iHeart has been on the financial ropes since their inception. They have amassed many radio stations since the inception but their finances have always been in question. This maybe the final straw.