(Photo by Smith Collection/Gado/Getty Images)

iHeartMedia Files Chapter 11 Bankruptcy

Ubiquitous iHeartMedia and some of its subsidiaries filed for Chapter 11 protection last night after reaching a pre-packaged agreement with its principle creditors. Reportedly, the agreement will help the company cut its debt in half to $10 billion after a debt-to-equity swap with some debt holders; and the spinoff of Clear Channel Outdoor Holdings, which is not a part of the Chapter 11 proceedings according to an announcement on their website.

iHeartMedia is the country’s largest radio broadcaster with around 850 stations and a leading outdoor advertising company (clear channel). So what does this mean for employees of iHeart?? Nothing yet! Just means the company will be spending lots on legal fees but ultimately folks are calling it a good move.

“It takes the cloud of bankruptcy off the table,”

Bruce Mittman, president and CEO of Mittcom, an advertising agency in Boston, and operating partner at Community Broadcasters, owner of 46 radio stations in eight markets spoke to The Boston Herald about the move. “It allows them to now operate at full speed because they’ve restructured their debt.”