• iHeartMedia Announces Overwhelming Creditor Support for Plan of Reorganization

    SAN ANTONIO–(BUSINESS WIRE)–iHeartMedia, Inc. (PINK: IHRTQ) (“iHeartMedia”) today announced voting results for the Company’s Fifth Amended Joint Chapter 11 Plan of Reorganization (the “Plan”). Voting results indicate that every class of creditors entitled to vote has voted to approve the Plan. More than 90% of the votes cast by creditors and shareholders who participated in the vote approved the Plan, demonstrating substantial support for, and far exceeding the votes necessary to confirm, the Plan.

    The voting results indicate strong support of iHeartMedia’s Plan, which achieves a value-maximizing restructuring that comprehensively addresses the company’s funded debt obligations and positions iHeartMedia for continued growth and long-term success. The Plan will reduce iHeartMedia’s funded debt by approximately $10.3 billion—to $5.75 billion—and result in the separation of iHeartMedia’s radio and outdoor advertising businesses. With the support of its creditors and the expected confirmation of the Plan, iHeartMedia expects to complete its restructuring process and exit Chapter 11 in early 2019.

    Insider’s Take – Most important to us in the plan is the separation of Clear Channel Outdoor from iHeart Media, which we view as terrific news for CCO.  There will still be some ownership uncertainty for Clear Channel Outdoor as CCO will be mostly owned by the creditor group.  That creates an ownership group that, most likely, would prefer cash instead of holding equity.  If they are looking to maximize cash value, a sale could be an attractive option.

    The next key date will be December 11th, which is the date set for the confirmation hearing.  Even with iHeart’s announcement of support from creditors, the plan will require court approval.



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