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IHeart Prepares for Bankruptcy as Soon as This Weekend

  • Documents are circulating without an accord on restructuring
  • An omen: Senior lenders aren’t involved in restricted talks
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Bloomberg’s Jason Kelly discusses a possible bankruptcy at iHeartMedia.(Source: Bloomberg)
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Embattled IHeartMedia Inc. is circulating documents for a bankruptcy filing that could come as soon as this weekend for the biggest U.S. radio broadcaster.

Advisers to some of iHeart’s senior creditors have been shown bankruptcy papers that would be used on the first day of court proceedings, according to people with knowledge of the matter. Despite a year of negotiations on a restructuring plan, a formal support agreement still isn’t in place with the most-senior lenders, and the creditors aren’t in restricted talks with the company, said the people, who asked not to be identified discussing private negotiations. Creditors typically agree to restrict some of their activities in exchange for non-public information when talks heat up.