CMLS - If iHeartMedia Cannot Restructure It Could Eventually File For Chapter 22 Bankruptcy

2024-06-10 13:02:39 ET

Summary

• iHeartMedia needs to restructure their $5.3 billion debt and extend debt maturities.
• 2Q guidance by management was for flat revenue and EBITDA of $140 million to $160 million, which is down from 2Q '23 EBITDA of $191 million.
• If they do not restructure their balance sheet, they could end up filing for "Chapter 22" bankruptcy.
• They should benefit from higher political revenue this election year.

Because iHeartMedia ( IHRT ) exited Ch.11 bankruptcy in 2019 with too much debt ($5.75 billion) they could end up back in court within the next two years, if they don't restructure now. The company needs to restructure their debt and possibly sell some assets long before a total of $3.1 billion debt matures in 2026 and $1.7 billion matures in 2027. Even with higher political ad revenue expected this election year, the outlook, however, for IHRT shareholders is rather bleak....

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