$20 billion debt: San Antonio-based iHeartMedia files for bankruptcy

$20 billion debt: San Antonio-based iHeartMedia files for bankruptcy

It also allows for the operation of iHeart as normal - a point stressed by company executives as it it becomes the second major owner of radio stations to elect for bankruptcy protection.

Ed Sheeran, Eminem, Maroon 5 and Cardi B all performed Sunday night as part of the iHeartRadio Music Awards, a testament to the company's dominance over the radio business.

Known for its enormous arsenal of iHeartRadio stations around North American, iHeartMedia Inc. has filed for bankruptcy.

Variety reports that the company reached an agreement with the holders of more than $10 billion of its cumulative debt. Its iHeartRadio streaming radio app lets users tune into thousands of stations, some live broadcasts and some customized such as the current Shamrock Radio station. According to Wooten, the company entered into Chapter 11 in order to "reorganize our corporate debt", and this will help to "resolve an issue that has been hanging over the company for some time".

IHeartMedia has maintained that its radio stations remain popular and vital even as it has introduced apps and negotiated new licensing deals meant to control its royalty payments online.

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In court papers, iHeartMedia Treasurer Brian Coleman said the company had "encountered significant and unexpected macroeconomic and industry-specific headwinds" that limited its ability to generate cash flows, grow businesses, and satisfy its debt obligations. The CEO will receive $10.3 million in bonus payments - on top of everything else - for courageously running this company into the ground.

The company owns 850 radio stations and a streaming service.

The filing is devised to address some $20 billion in debt, according to a report in the Journal. The company says it will continue to operate its business "in the ordinary course" during a restructuring process.

The IHeartMedia bankruptcy will certainly have ripples here in the Tennessee Valley.

Ocean Outdoor recently announced it is set to float on the London stock market and another DOOH owner, 8 Outdoor, has taken Asian investment. It also did the opposite, exchanging debt securities due in 2021 for that year in exchange for a lower interest rate - however, numerous debts it exchanged this way last year were significantly lower than the debts it chose to delay; $15.6 million and $45 million in two transactions, for example.

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