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iHeartMedia, legacy notes trustee reach agreement on plan treatment
By Caroline Salls
Pittsburgh, Jan. 18 – iHeartMedia, Inc. said in a notice filed Thursday in the U.S. Bankruptcy Court for the Southern District of Texas that it has reached an agreement in principle with legacy notes trustee Wilmington Savings Fund Society, FSB regarding a settlement and related proposed changes to the company’s plan of reorganization.
Under the settlement term sheet, in addition to the recovery already provided for holders of legacy notes claims, these creditors will receive their share of an additional 0.2% of special warrants, new iHeart common stock or a combination of warrants and stock.
The reorganized equity portion of the additional legacy notes’ recovery will come from a 0.1% reduction in 2021 notes claimants’ recovery and an 0.1% reduction of the total recovery earmarked for consenting sponsors.
The company said claims for 5½% senior notes due 2016 will be allowed in an amount of $57.89 million; claims for 6 7/8% senior notes due 2018 will be allowed in an amount of $178.01 million, and claims for 7¼% senior notes due 2027 will be allowed in an amount of $309.06 million.
Also, under the amended plan, legacy note claims that qualify as intercompany notes claims will be cancelled without distribution, with the distribution scheduled to be allocated to those creditors to go instead to holders of non-intercompany legacy notes claims.
The iHeart debtors will also pay $4 million to the legacy notes trustee to cover its fees and expenses.
iHeartMedia is a media and entertainment company based in San Antonio. The company filed bankruptcy on March 15, 2018 under Chapter 11 case number 18-31274.
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