Thursday, 27 April 2017
iHeart struggles under debt burden
iHeartMedia has warned investors that it may be forced into administration before the end of the year, weighed down by a $350 million debt re-payment which is shortly due. The biggest radio broadcaster in the US, and owner of the iHeartRadio streaming service and Clear Channel advertising business, iHeart took on $20 billion of debt during a $24 billion private equity buyout in 2008. If it makes this year's repayment, it still has a far more significant $8.3 billion due in 2019. In a filing with the US Securities And Exchange Commission, iHerat says: "Management anticipates that our financial statements to be issued for the three months ended 31 Mar 2017, will include disclosure indicating there will be substantial doubt as to our ability to continue as a going concern for a period of twelve months following the date the first quarter 2017 financial statements are issued".