iHeartMedia Could Collapse This Year Due To Debt Trouble

iHeartMedia, media leaders and owners of iHeartRadio have announced some unfortunate news after running into substantial finanical issues. After the buyout of Clear Channel Communications, the company lost a whopping $20 million. Supposedly, $350 million of that money is to be paid off this year, with $8.3 billion being paid back in 2019.

In iHeartMedia’s submission to the SEC on Apr. 20, they claimed the preliminary fiscal results for the three months ended on the last day of March this year

“Management anticipates that our financial statements for the three months ended March 31, 2017 will include disclosure indicating there will be substantial dount as your ability to continue as a going concern for The Subsequent 12 months following the date the first quarter 2017 financial statements are issued as a result of uncertainty around our ability to refinance or extend the maturity of our receivables based credit facility, to achieve our forecasted results, and to achieve sufficient cash interest savings from the pending Exchange Offers and Term Loan Offers.”

In financial reports filed last friday, it claimed the company’s creditors weren’t allowing them to figure out their debt issue. If the company has to file for bankrupcy, it could seriously effect other “music business rightholders.” iHeartMedia provides for 858 owned radio stations through their official app which has now been downloaded more han a billion times.

McKenzie Dillon: University of Nevada, Reno Alumna. I graduated with a major in writing and a minor in journalism. I enjoy reading, writing, and listening to music of course. I was raised in the bay area, and am thrilled to be living back in California. Catch me at your local music festival, because there's nothing better than laying back in the grass and listening to your favorite bands or discovering new ones.
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