iHeartRadio Owner Declares Bankruptcy
The company has over $20 billion in debt
Photo by Jason Kempin/Getty
iHeartMedia, Inc., the parent company to iHeartRadio, announced on Thursday they have filed for bankruptcy. With 850 AM and FM radio stations across the U.S., iHeartRadio is by far the country’s largest radio broadcast network. It now joins its rival, Cumulus, as the two major radio networks in America have now filed for bankruptcy, Cumulus filed for Chapter 11 a few months back after facing similar challenges as its competitor.
A statement from the company reveals that iHeartRadio has accumulated more than $20 billion in debt, but has now reached an agreement with its creditors to restructure around half of that debt, about $10 billion. Per CNN, the company been burdened by their debt for many years, struggling to recover from the debt load it took on by buying out billboard advertising company Clear Channel Outdoor in 2008. According to iHeartRadio’s official statement, however, “Clear Channel Outdoor Holdings, Inc. and its subsidiaries did not commence Chapter 11 proceedings.”