Struggling under the weight of $20 billion in debt, broadcast radio conglomerate iHeartMedia has admitted to investors that it may not survive 2017.
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Late last week iHeartMedia announced that its next quarterly report to investors will include a warning “as to our ability to continue as a going concern” over the next 12 months. The company also reported a 2.4% decline in revenue over the previous year.
Adding to their woes, a group of key lenders are reportedly banning together to block any debt restructuring, according to Reuters. The “going concern” warning could be a ploy designed to encourage investors to be more flexible. iHeartMedia needs over 50% of the debt holders to approve a debt swap to complete a proposed restructuring.
All of that bad news pushed iHeartMedia stock down almost 5% on Friday.
iHeartMedia owns 850 stations that reach more than 110 million listeners every week, and 245 million every month. The company is also a major player in online broadcasting with iHeartRadio. It recently launched a paid subscription music service in conjunction with Napster.