Court Sets Timetable For iHM Re-Org Plan

A Texas bankruptcy judge issued an order Thursday approving the disclosures and solicitation materials for iHeartMedia Inc.'s Chapter 11 plan, which is expressly opposed by the broadcast media giant's unsecured creditors and has faced challenges from federal authorities.

With approval from U.S. Bankruptcy Judge Marvin Isgur, iHeartMedia has inched forward in its mission to restructure $16 billion in funded liabilities and emerge from bankruptcy with a more sustainable level of debt.

The broadcaster has faced pushback from a committee of unsecured creditors.

The court approval, handed down Thursday, followed iHeart filing a Fourth Amended Joint Chapter 11 Plan of Reorganization. iHM filed for bankruptcy protection back in March with a goal of reducing its $20 billion in debt by $10 billion before the end of this year.

The order also sets a series of deadlines for soliciting and counting votes, including a voting deadline of Nov. 9 at 5pm Central time. A pretrial conference has been set for Nov. 30, followed by a Dec. 11 confirmation hearing, a key event in the Chapter 11 process.

On March 14 iHM struck an agreement in principle with a group of its lenders on a comprehensive balance sheet restructuring that will cut nearly two-thirds – or about approximately $10.3 billion – in debt and will separate iHM’s radio and digital business from the outdoor business.

Under the proposal, iHM’s senior creditors would receive a 94% stake in the reorganized company along with $5.55 billion of the new secured debt and all of the company’s equity in subsidiary Clear Channel Outdoor. The holders of iHM’s unsecured debt would receive $200 million of the new secured debt and take a 5% equity stake in the reorganized iHM, and holders of iHM’s interests would receive 1% of the equity, reports InsideRadio.