iHeartMedia, the company that owns iHeartRadio, has admitted that they may not be able to last the year. The company has long faced scrutiny on Wall-Street for their substantial amount of debt; according to Music Business Worldwide, "they are shouldering a debt of approximately $20 billion" and "nearly $350m of that debt is due to be paid this year, with another $8.3bn to be satisfied in 2019." In other words, they're in need of a solution, fast.
In their report for their fiscal year, they noted:
“Based on the significance of the forecasted future negative cash flows… management anticipates that our financial statements to be issued for the three months ended March 31, 2017 will include disclosure indicating there will be substantial doubt as to our ability to continue as a going concern for a period of 12 months following the date the first quarter 2017 financial statements are issued as a result of uncertainty around our ability to refinance or extend the maturity of our receivables based credit facility, to achieve our forecasted results, and to achieve sufficient cash interest savings from the pending Exchange Offers and Term Loan Offers.”
According to Music Business Worldwide, the company "boasts over quarter of a billion monthly listeners in the US market, with over 85m social followers," so a restructuring via Chapter 11 could mean a drastic change on mainstream radio. While it's hard to tell exactly what will happen, the world of radio is sure to see some big changes in the coming months.
Read the full details here.