The music enterprise is singing a solemn tune.
iHeartRadio Inc., the popular and widespread broadcast and Internet radio conglomerate, is prepping a bankruptcy announcement that could come as early as this weekend.
Bloomberg News reports how the company's senior creditors have already been notified of bankruptcy papers that were created in advance to prepare for any upcoming court filings. iHeart has allegedly been negotiating the terms of its restructuring plan, but after missing a February 1 interest payment, and the conclusion of a 30-day grace period, their declaration of bankruptcy seems imminent.
Alongside a missed interest payment, the company, which is led by CEO Bob Pittman, has also failed to provide restitution on two bonds. iHeart is said to be $20 billion in debt, which can most likely be attributed to a leveraged buyout in 2008.
Another creditor by the name of Liberty Media offered to help forestall their impending bankruptcy by endowing them with some extra cash. However, their offer was not enough to satiate the company's list of creditors and what is owed to them.
Liberty Media was reportedly willing to shell out $1.6 billion to the fledgling company, while also acquiring 40% of iHeart in the process. Liberty, who oversees SiriusXM, already owns a significant amount of iHeart's debt.