iHeartMedia recently filed bankruptcy amidst reports they have $20 billion worth debt. iHeartMedia, the United State’s largest radio company, has agreed to restructure its debt by roughly $10 billion. This news comes as no surprise, as the radio conglomerate failed to repay a portion its debts in early March.
iHeartMedia was purchased by two private equity firms in 2008, towards the end the buyout boom and the beginning the financial crisis. This buyout was reportedly worth $17.9 billion, nearly the full amount the debt registered before the restructuring.
Additionally, the company’s shares lost 75% its value in 2015 and never rebounded, resulting in a bleak outlook for investors. With 855 stations, iHeartMedia is second to none in terms size, and reaches 110 million listeners every month. The company also employs roughly 14,000 employees, so hopefully the reported restructuring results in a return to success.
Talkers Magazine publisher Michael Harrison said,