Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The proposed Plan achieves a value-maximizing restructuring that comprehensively addresses the Debtors’ funded debt obligations and positions their businesses for continued growth and long-term success. As a result of extensive negotiations with groups representing their primary stakeholders, the Debtors entered into a restructuring support agreement on March 16, 2018. As a result, the transactions embodied by the Plan enjoy the support of Holders of nearly $12 billion of outstanding debt obligations across the Debtors’ capital structure (including outstanding indebtedness held by the Debtors and their Affiliates), as well as the Debtors’ equity sponsors. The Plan will reduce the Debtors’ funded debt by nearly two-thirds – approximately $10.3 billion – and will result in the separation of the iHeart business and CCOH businesses through either a Tax-Free Separation or a Taxable Separation (the ‘CCOH Separation’).”
The plan will require approval by a vote of the impaired creditors and by the court at a confirmation hearing.