iHeart Files for Chapter 11 Relief as John Malone Affiliated Companies Want to Participate in Case

No. 1 U.S. radio station owner iHeartMedia filed for Chapter 11 bankruptcy relief in U.S. Bankruptcy Court in Houston, said court filings and a news release Wednesday. Two companies affiliated with media investor John Malone want to participate in the case. Industry officials expected a restructuring, and it was believed imminent after iHeart didn’t make an interest payment last month (see 1802050049). The “comprehensive balance sheet restructuring” is intended to reduce debt by more than $10 billion, said iHeart’s release. The company is more than $20 billion in debt, CEO Bob Pittman said. IHeart filed for the restructuring after reaching an agreement with debtholders, it said: The company “will continue operating the business in the ordinary course,” during the restructuring. It ”believes that its cash on hand, together with cash generated from ongoing operations, will be sufficient to fund and support the business during the Chapter 11 proceedings,” the broadcaster said. Filings for the bankruptcy case show attorneys representing SiriusXM and Liberty Media filed motions to appear in the case on behalf of those entities as interested parties. Liberty expressed interest in investing in iHeart's restructuring (see 1803010060).