IHeartMedia withholds portion of $250 million bond payment
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Thread: IHeartMedia withholds portion of $250 million bond payment

  1. #1

    IHeartMedia withholds portion of $250 million bond payment

    "San Antonio-based iHeartMedia Inc. decided not to repay a portion of a $250 million bond payment due Thursday in a risky and unusual move to buy the beleaguered radio giant more time to restructure its crushing debt load."

    Interesting. http://www.mysanantonio.com/business...0-10793939.php

  2. #2
    I think the company explained it really well. The fact is they've really done a great job building new value in the company. They own some of the most profitable radio stations in the country. Even then, the new value doesn't add up to $20 billion. What would you do? I really can't find fault in what they're doing, given the cards they've been dealt.

  3. #3

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    But....but....they're going to sell all the stations to mom and pop operators, who will hire us all as 60 year old oldies jocks, playing 10,000 songs!

  4. #4
    Quote Originally Posted by gr8oldies View Post
    But....but....they're going to sell all the stations to mom and pop operators, who will hire us all as 60 year old oldies jocks, playing 10,000 songs!
    I'm sure that's what Bain is thinking about doing. Because they know so many moms & pops.

  5. #5
    Quote Originally Posted by TheBigA View Post
    I think the company explained it really well. The fact is they've really done a great job building new value in the company. They own some of the most profitable radio stations in the country. Even then, the new value doesn't add up to $20 billion. What would you do? I really can't find fault in what they're doing, given the cards they've been dealt.
    No criticism was implied, it is just interesting as I said. I'm no financier but it strikes me as creative to not pay your own subsidiary so as to avoid the circumstances under which you pledged to put up more collateral. What I don't think was explained was this: “likely faces litigation not matter what action it takes.” I can see how the action they took would face litigation but not simply paying and putting up the collateral. What party litigates that?

  6. #6
    Quote Originally Posted by gr8oldies View Post
    But....but....they're going to sell all the stations to mom and pop operators, who will hire us all as 60 year old oldies jocks, playing 10,000 songs!
    More than one friend asked me if i'd considered buying a station or stations. The very thought made me cringe.

  7. #7
    Quote Originally Posted by SaltyDog View Post
    What party litigates that?
    These days, everybody litigates. Another difference between business today and 30 years ago.

    The Turtles just sued Sirius and won $80 million. That's a lot of money they wouldn't have had if they hadn't litigated.

  8. #8
    Quote Originally Posted by TheBigA View Post
    These days, everybody litigates. Another difference between business today and 30 years ago.

    The Turtles just sued Sirius and won $80 million. That's a lot of money they wouldn't have had if they hadn't litigated.
    I should have been more specific. I meant, if they paid the full amount and the debt fell below the minimum triggering additional collateral requirements as per their agreement, who would be be damaged and have a plausible argument that iHeart did something wrong?

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