Thursday, March 1, 2018
iHM Bankruptcy Reported To Be All But Certain
According to Bloomberg, advisers to some of iHM’s senior creditors have been shown bankruptcy papers that would be used on the first day of court proceedings, according to people with knowledge of the matter. Despite a year of negotiations on a restructuring plan, a formal support agreement still isn’t in place with the most-senior lenders, and the creditors aren’t in restricted talks with the company, said the people, who asked not to be identified discussing private negotiations. Creditors typically agree to restrict some of their activities in exchange for non-public information when talks heat up.
Billionaire John Malone’s Liberty Media stepped in with a last-minute offer to senior creditors that would help salvage iHM by injecting cash and financing a trip through bankruptcy, but analysts have said the bid isn’t high enough to win over creditors. Still, talks remain fluid and ongoing between the secured creditor group and Liberty Media, according to the people.
Meanwhile, iHM and creditors are positioning themselves for what could come after a the bankruptcy filing, with the company disclosing a bonus plan for Chief Executive Officer Bob Pittman and junior bondholders controlling more than $200 million of unsecured debt suing in a New York state court. They’re accusing iHM of secretly using assets for years to secure other borrowing. The suing bondholders include funds run by Angelo Gordon & Co., a distressed-debt investor that had been accumulating shares of iHM’s billboard advertising company, Clear Channel Outdoor Holdings Inc.
Posted 4:59:00 PM