BREAKING: iHeart files for bs kruptcy

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  • #35461
    msndrspdx
    Participant

    News just breaking that iHeart has filed for bankruptcy tonight. What happens tomorrow morning? Might be worth it to check the iHeart Radio app in the morning. If you’ve got Comcast, you hsve it in the apps section of your cable program guide.

    In San Francisco, iHeart has an all 80s FM station whose morning DJ is former MTV host Martha Quinn. Will she talk about this on air tomorrow? And of course, they own a significant group of Portland stations as well who are headquartered out in Tigard. What happens when everybody reports in for their morning shows? Could be an interesting day out there.

    #35462
    Andrew
    Participant

    It’s Chapter 11 – so it sounds like nothing much will change in the company’s operations quickly:

    iHeartMedia Files for Chapter 11 Bankruptcy Protection

    #35472
    Master of Disaster
    Participant

    This is being covered closely by Radio Insight, who reports they will continue to operate all their stations:

    iHeartMedia Files For Chapter 11 Bankruptcy After Reaching Agreement With Debtholders

    Previous coverage going back the last month or so indicated this was being negotiated with creditors well before being field.

    #35475
    washnotore
    Participant

    Does this mean Rush Limbaugh is out of job?

    #35478
    Alfredo_T
    Participant

    Rush Limbaugh signed a contract with iHeart that is effective into 2020. See https://www.nytimes.com/2016/08/03/business/media/rush-limbaugh-renews-radio-contract.html

    #35480
    cbaravelli
    Spectator

    Too big to fail.
    Who’s left to buy? Amazon, Comcast, Verizon? Sinclair shot its wad.
    Still say iHeart is the best radio conglom in American broadcast history.

    #35482
    tombrooks
    Participant

    Sounds like a Pre-Package Bankruptcy – Creditors/owners/bond holders all have their ducks lined up so no surprises in court…I am guessing the $10 Billion will swap for equity – the big questions will they get more than 50% control – thats the big question…guessing no inside info from me…

    #35483
    Andy Brown
    Participant

    The long awaited train has arrived and it is in sad shape. The deal still needs approval from the court and some holdout creditors, and the company could hear again from John Malone’s Liberty Media LLC, which has said it wants a stake in the reorganized media giant.

    The spin out there already is that this won’t effect anything. It will. The fact is they have filed the first round of paperwork. What their bankruptcy really will look like is yet to be determined.

    Widespread layoffs at various iHeartMedia properties in Chicago, Detroit, Tampa, Cleveland, Cincinnati, Jacksonville, Sacramento, New Orleans, Grand Rapids, Florence, and Mobile, Alabama; Biloxi, Mississippi; and Canton, Ohio all were ongoing just last year as they reconfigured their payroll numbers preparing for this filing. To call these clowns “the best radio conglomerates in American history” is ludicrous. Frankly, they haven’t been around long enough to have that title bestowed upon them. Not too big to fail. Wait, you’ll see what emerges from this and it won’t be pretty.

    #35487
    cbaravelli
    Spectator

    IHRT-OTC:
    .52 share, up 8% since yesterday market close.
    Market capitalisation: 47.576M.
    52 week High / Low: .65 – .46.
    Annual EBITDA earnings: approx. $6.12B USD.
    Annual reported losses: approx. $1.02B USD.
    P/E ratio: NA
    Moody’s Credit Rating: Caa3 – Caa2.

    According to the U.S. Bankruptcy Court filing, unsecured debtors may exchange half the approx. $20B debt for 87% IHRT assets.
    There is sufficient cash flow to keep the Corp alive. Although not a ‘buy’, I remember APPL @ $3+ a share.

    #35488
    cbaravelli
    Spectator

    A.C. Nielsen has a big problem. Yeah, I know, a holding company. But, who’s gonna believe their rating numbers?
    I can hear street reps selling their clients, “Take a half share point off the iHeart stations. Nielsen owns part of the company.”

    #35492
    DanOregon
    Participant

    I wonder if Clay Travis will talk about this on his sports show. He was all over ESPN’s loss of cable subscribers.

    #35495
    Chris_Taylor
    Participant

    This has been predicted for a while now.

    #35560
    Vitalogy
    Participant

    Bain Capital is on a roll. Toys R Us, Guitar Center, and now Iheart.

    #35576
    DanOregon
    Participant

    LBOs are doing wonders for the newspaper industry as well. The “collateral” that made the initial deals possible is consumed by the new owners who have little interest in growing the business. When the bills come due, the property is so decimated there is no more value for the lenders to re-coup.
    I mean, if I use “your house” as collateral for a loan then burn it to the ground – that has to be some kind of crime right?

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