iHeartMedia Says It Still Needs More Time

iHeartMedia Tuesday afternoon a Federal court for more time in its bankruptcy proceedings.

iHM filed a motion filed with the U-S. Bankruptcy Court in Houston, asking the court to grant it more time in proceeding where debtors may remove actions from its Modified Fifth Amended Joint Chapter 11 Plan of Reorganization. 

It is asking the court to give it until June 7, 2019 to address the matters. 

It says, “Given the size and scope of the Debtors’ capital structure and business operations, expeditiously moving toward exit from these chapter 11 cases will require significant effort. Due to the Debtors’ efforts to date, they are on track to consummate a restructuring that will maximize value for all stakeholders.  As a result, the Debtors have not yet determined conclusively which Actions, if any, they will seek to remove. The extension requested herein will provide the Debtors with time to make informed decisions concerning which Actions to remove and will ensure that the Debtors’ rights to remove Actions can be exercised in an appropriate manner.” 

iHM insists rights of parties to the actions will not be unduly prejudiced.  “If the Debtors ultimately seek to remove Actions pursuant to Bankruptcy Rule 9027, parties will retain their right to seek remand with respect to such Actions pursuant to section 1452(b) of the Judicial Code. Therefore, the Debtors submit that cause exists for the relief requested herein.”

Also yesterday,  the bankruptcy court judge struck down a lawsuit that stood in the way of iHeartMedia Inc.’s reorganization plan.  In a decision handed down Tuesday, Judge Marvin Isgur denied claims by a group of junior bondholders, the so-called legacy bondholders, who had sued to get better treatment in a reorganization plan that awards 94% of the broadcaster’s equity to senior bondholders.