IHeart Warns Debtholders It May Not Remain a ‘Going Concern’

IHeartMedia, the troubled radio conglomerate, announced on Thursday that its next quarterly report will include a warning “as to our ability to continue as a going concern” over the next 12 months.

IHeart, formerly known as Clear Channel, is struggling under the burden of $20 billion in debt, the lingering hangover from its 2008 leveraged buyout.

In March, the company sought to stave off bankruptcy by offering debtholders a deal to exchange $15 billion in outstanding debt for new notes with lower interest rates and later maturity dates. The company recently extended the deadline for debtholders to decide whether to accept the offer. The “going concern” warning may be an attempt to prod reluctant noteholders to accept the offer.

IHeart also reported a 2.4% decline in first-quarter revenue compared to 2016.

IHeart has previously warned that it may be forced to declare bankruptcy if it cannot reach an agreement with its debtholders.

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