iHeartMedia reportedly preparing to file for bankruptcy
[Photo by: @iHeartMedia/Twitter]
iHeartMedia Inc. is reportedly "circulating documents for a bankruptcy filing" that could come as soon as this weekend, as Bloomberg reports.
The news source reports that iHeartMedia senior creditors have been shown bankruptcy papers, though a "bankruptcy filing is all but certain." However, they explain that iHeartMedia, the biggest U.S. radio broadcaster, missed its Feb. 1 interest payment and payment on two more sets of bonds as well.
This news isn't really new, however.
Last April, Forbes talked more about how the company was struggling, with multiple red flags seeming to suggest "that the end may be near." They report that the company lost money in 2015, 2016 and the first quarter of 2017, without much hope for increased cash flow, as iHeartMedia told the news source:
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.
"If iHeart itself is willing to admit that there is 'substantial doubt' as to whether or not the company can continue as a going concern (a firm that can stay above water, essentially), there is no reason not to believe what it says," Forbes shared.