iHeartRadio Files for Bankruptcy

According to the Los Angeles Times, iHeartMedia Inc. has officially filed for bankruptcy. Accumulating up to $20 billion in debt, the company formerly known as Clear Channel filed a Chapter 11 on Wednesday (March 14). In hopes of turning things around by filing the Chapter 11 for protection, the company is not out the clear just yet as the deal is still pending approval from the court and some creditors.

“Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company,” said Robert Pittman, iHeart’s Chief Executive Officer.

IHeart’s corporate owners Thomas H. Lee Partners and Bain Capital stated that they reached an agreement with investors last March, who hold $10 billion of their debt, following the buyout back in 2008. iHeart has been struggling to keep up with streaming platforms like Spotify who have been putting a damper on sales.

Despite filing for bankruptcy, Debtwire analyst Seth Crystall believes that the company will not shut down.

“They’re not shutting down. They’re going to pay their bills,” Crystall says. “If you were listening to iHeartRadio, or going to iHeart concerts, you will not even know the difference.”