The company that brought you iHeart Radio, allowing you to listen to radio stations around the country on your computer or phone, has filed for Chapter 11 bankruptcy
IHeartMedia filed for Chapter 11 on Thursday. While best known for the iHeart Radio app, which allows users to stream music and radio programming, it’s also the largest operator of actual radio stations across the country. San Antonio-based iHeartMedia operates 850 radio stations across the United States. The company was formerly known as Clear Channel.
The company said this week it had reached an agreement in principle with creditors owed more than $10 billion in outstanding debt, about half the company’s overall debt.
The company said it had enough cash in hand to continue paying its employees and will “continue operating the business in the ordinary course.”
“We have transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms, and the iHeartRadio master brand that ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers,” said Bob Pittman, Chairman and Chief Executive Officer. “The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure. Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”