Words by Danielle Perry
iHeartMedia, a broadcast and radio company that owns internet station iHeartRadio, is preparing to file for bankruptcy that could happen as soon as this weekend.
According to Bloomberg News, iHeart’s senior creditors have seen bankruptcy papers that could potentially be used on the first day of filing. A bankruptcy filing is all but certain for the company as it missed a Feb.1 interest payment, with a 30-day grace period that is running out.
iHeart, controlled by Chief Executive Officer Bob Pittman, missed payments on two sets of bonds. The company currently owes $20 million, thanks to a leverage buyout back in 2008.
Liberty Media proposed a last-minute offer to wave off bankruptcy and inject cash into iHeart, but the offer from John Malone’s company was not high enough to win over creditors. iHeart runs the largest land-based radio network with about 850 stations.
According to sources, Liberty could have invested $1.16 billion, purchasing a 40% stake in iHeart, but not without some changes in the company. Liberty, owner of SiriusXM Radio, already has an increasing amount in iHeart debt and talks of the matter are still ongoing.
The Source will bring you more updates as this story develops.