In a developing financial maneuver, several holders of a $500 million bond issued by iHeartMedia Inc. have enlisted the services of the law firm Akin Gump Strauss Hauer & Feld in anticipation of a potential debt restructuring. This move comes amid mounting concerns over the company’s financial health, highlighted by the 2028 note trading at 55.5 cents, close to a record low.
The group of bondholders, who collectively hold a majority of the privately placed issue sold in 2019, have entered into a cooperation agreement that mandates joint action among investors. According to insider reports, the bondholders have sent a letter to iHeartMedia expressing their intention to work collaboratively with the company and other creditors in order to address the financial challenges.
As the discussions are private and ongoing, further details about the cooperation agreement and potential restructuring plans have not been disclosed. The situation remains fluid and stakeholders are keenly observing the developments.
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