iHeartRadio Inc., the popular and widespread broadcast and Internet radio conglomerate, is prepping a bankruptcy announcement that could come as early as this weekend.
Bloomberg News reports how the company’s senior creditors have already been notified bankruptcy papers that were created in advance to prepare for any upcoming court filings. iHeart has allegedly been negotiating the terms its restructuring plan, but after missing a February 1 interest payment, and the conclusion a 30-day grace period, their declaration bankruptcy seems imminent.
Alongside a missed interest payment, the company, which is led by CEO Bob Pittman, has also failed to provide restitution on two bonds. iHeart is said to be $20 billion in debt, which can most likely be attributed to a leveraged buyout in 2008.
Another creditor by the name Liberty Media fered to help forestall their impending bankruptcy by endowing them with some extra cash. However, their fer was not enough to satiate the company’s list creditors and what is owed to them.
Liberty Media was reportedly willing to shell out $1.6 billion to the fledgling company, while also acquiring 40% iHeart in the process. Liberty, who oversees SiriusXM, already owns a significant amount iHeart’s debt.