Senior Lenders to iHeartMedia Plan Bid to Unify Creditors
- Debtholders seek to agree on plan before possible bankruptcy
- Consent from junior creditors needed as grace period nears end
Photographer: Jason Kempin/Getty Images
Senior lenders to iHeartMedia Inc. are preparing to pitch a new term sheet to junior bondholders in an attempt to unite all the creditor groups behind a common proposal as time runs out for the radio giant’s debt restructuring, according to people with knowledge of the conversations.
The senior group, led by Franklin Resources and advised by PJT Partners and Jones Day, held a call Tuesday to finalize terms of the proposal, according to one of the people. The group plans to pitch it this week to holders of iHeart’s 14 percent notes due 2021 and legacy notes, said the people, who asked not to be identified because the talks are private. The proposal is the latest step in a series of recent conversations between the different groups.