Struggling under the weight of $20 billion in debt, broadcast radio conglomerate iHeartMedia has admitted to investors that it may not survive 2017.
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.
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.
