Pursuits
IHeartRadio Struggles to Calm Partners in Debt Default Trial
- Parent company’s line of credit slashed on financial concerns
- Industry partners, employees skittish under bankruptcy threat
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IHeartMedia Inc.’s internet music service has struggled to calm industry partners, lenders and employees spooked by the bankruptcy threat created by bondholders’ attempt to declare $6 billion in senior notes in default, a top executive testified in Texas.
“It’s disrupting our operating business every day,” Darren Davis, president of iHeartRadio, a digital radio service, said in the second day of a state-court trial in San Antonio. IHeartMedia, formerly known as Clear Channel Communications, is the nation’s largest owner of radio stations.