SAN ANTONIO, TX (CelebrityAccess) — Radio and live event conglomerate iHeartMedia announced that it has completed its restructuring process, marking a successful conclusion of a months-long bankruptcy.
As a result of the balance sheet reconfiguration, iHeartMedia said it reduced its outstanding debt burden from $16.1 billion to $5.75 billion.
A significant portion of iHeartMedia’s debt was obtained in a private equity buyout of the company in 2006 by Thomas H. Lee Partners and Bain Capital, in a deal worth $26.7 billion. The deal also added $8 billion in debt to Clear Channel’s balance sheet and paved the way for the company’s future bankruptcy.
In addition, in conjunction with the completion of the restructuring, iHeartMedia completed the spin-off of its Clear Channel Outdoor Holdings company, creating two independent publicly-traded companies.
Clear Channel Holdings, which includes the company’s outdoor advertising business, will continue to be traded on the New York Stock Exchange under the ticker symbol “CCO.”
As previously announced, Bob Pittman will continue in his role as Chairman and Chief Executive Officer of iHeartMedia, while Rich Bressler stay on as President, Chief Operating Officer and Chief Financial Officer of iHeartMedia.
In addition, a new Board of Directors has been appointed, including Bob Pittman, Rich Bressler, and the following members: Jay Rasulo, Gary Barber, Brad Gerstner, Sean Mahoney and Kamakshi Sivaramakrishnan. Upon iHeartMedia’s emergence, the new Board of Directors has assumed its responsibilities.
“We are pleased that iHeartMedia now has a capital structure that matches our exciting operating business. The focused dedication of our employees and the unwavering support of our new owners and advertising partners enabled iHeartMedia to seamlessly complete the restructuring process and reach this final milestone,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc. “iHeartMedia enters this next phase of growth as a multi-platform audio company with a vastly improved financial profile. We are well-positioned to continue to innovate and offer cutting-edge technologies, products and services to our audiences and advertisers.”