iHeartMedia inks plan settlement, looks to continue vote solicitation

By Caroline Salls

Pittsburgh, Oct. 11 – iHeartMedia, Inc. is seeking court approval to continue to solicit votes on a fifth amended plan of reorganization that incorporates a settlement reached with the official committee of unsecured creditors appointed for its Chapter 11 case, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

iHeartMedia said the fifth amended plan provides holders of guarantor general unsecured claims with a cash recovery between 45% and 55% of their claims, up from 0% to 7.53% under the fourth amended version of the plan.

In addition, holders of general unsecured claims against the iHeartCommunications debtor will receive the same treatment as under the fourth amended plan, namely a recovery of 14.44%, provided that if the treatment to be provided on account of any other unsecured claims against that debtor, including any 2021 notes claims and/or legacy notes claims would provide the holder with a greater percentage recovery than the general unsecured creditors, the general unsecured creditors will receive an additional cash distribution so that the recoveries will be equal.

As a result of the settlement, the company said the committee supports the plan and will recommended that unsecured creditors vote to accept it and not opt out of plan releases.

iHeartMedia said it intends to resolicit votes on the fifth amended plan only from holders of general unsecured claims in classes 7D and 7G.

According to the proposed timeline included in the motion, the company would be required to begin soliciting votes by Oct. 22, votes would be due by 6 p.m. ET on Nov. 16, and the plan confirmation hearing would be held on Dec. 11.

iHeartMedia is a media and entertainment company based in San Antonio. The company filed bankruptcy on March 15, 2018 under Chapter 11 case number 18-31274.

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