iHeartMedia is preparing to enter Chapter 11 bankruptcy as early as Monday, according to multiple sources. iHeart owns 855 radio stations in the US, as well as, multiple popular streaming channels.
The fall of iHeartMedia began in 2008 when private equity firms Bain Capital and Thomas H. Lee Partners bought what was then Clear Channel and financed the $20 billion deal with loans equal to 9 times the company’s pre-tax cash flow. That’s 50% higher than the 6X leverage limit set by the federal government in 2013. The Trump administration has said that they will remove all such limits soon.