UPDATED: The company’s bankruptcy talks were extended yet again on Wednesday — the deadline is now 11:59 p.m. Central Time on March 14.
iHeartMedia filed a document with the Security and Exchange Commission early today that gives the company and its lenders a 24-hour extension to work out an agreement over its $20 billion in debt. This is the company’s third extension since March 1.
IHeart is saddled with nearly $20 billion in debt as a legacy of its leveraged buyout in 2008. Of that, approximately $8.4 billion comes due in 2019, and the company has no obvious way to repay it.
Negotiations have been underway for several months but the two sides have been unable to come to terms on a final plan for the restructure. iHeart missed a $106 million interest payment on February 1, which set off a 30-day deadline before a default; it missed another interest deadline on March 1.
Late in February, SiriusXM parent company Liberty Media proposed an infusion of $1.159 billion into a reorganized iHeartMedia that would see it acquiring 40% in New Common Shares, 20% to be held by SiriusXM and 20% by Liberty Media. The proposed restructure, which would include a new nine-member board to directors, of which Colorado-based Liberty would hold four seats, would be subject to approval of a Chapter 11 plan by all parties.
Clear Channel Outdoor, iHeart’s outdoor advertising division, would be spun off as part of the proposed reorganization. The term sheet calls for “consummation” to be completed by December 21, 2018.