iHeartCommunications, Inc. Decline To Pay
Adrian J Cotterill, Editor-in-Chief
February 1, 2018 was deadline day for financially troubled Clear Channel parent, iHeartCommunications, Inc. to pay money it owes on some loans.
In what can only be described as an interesting move, its Board issued a press release noting that it had “elected not too make the interest payment” – wow! if only life were that simple when bill and debts came in?
The announcement did make pains to mention that it would not (technically at least) be in default as there as a 30 day grace period. So, let’s see what happens in 30 days time then!
The cash interest payment was USD 106 million, so not a small sum then and what the holders of its 14% senior unsecured notes due 2021 think is anyone’s business. No doubts lawyers somewhere are licking their lips.
The Board did say, we quote, “elected not to make the payment in connection with ongoing efforts to proactively and comprehensively address the Company’s capital structure”.
Whatever way you look at it, iHeartCommunications is in every poor health and surely very, very close to a final collapse. This will of course have an impact on it’s subsidiaries such as Clear Channel wherever they operate.
Clear Channel UK and Clear Channel International (which covers continental Europe) are both good businesss and despite its parent’s problems seem to be both thriving at the moment.
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