Report: Plan Emerging To Save iHM From Bankruptcy

Several lenders to the Bob Pittman-run iHeartMedia have split from Franklin Advisers, the media company’s largest creditor, and are close to reaching a restructuring plan with iHeart that would keep America’s biggest radio station owner out of bankruptcy, The NYPost has learned.

However, the lenders, led by Symphony Asset Management, will not sign the deal unless Franklin ultimately agrees to the terms, a source close to the negotiations said Monday.

The lenders’ latest proposal calls for them to gain control of 49 percent of iHeart — with exiting equity holders retaining 51 percent of the value, a regulatory filing Monday revealed.

Franklin, which owns $2.3 billion of the company’s $20 billion in debt, is reviewing the proposal, sources said.

The company, which has been trying to restructure $14.6 billion in debt since mid-March, said it still hasn’t reached an agreement with its lenders and bondholders, according to a filing with the Securities and Exchange Commission Monday.