As it moves closer to emerging from Chapter 11 bankruptcy protection, iHeartMedia is evaluating potential paths to return to the public markets. The company is considering options including a direct listing on a U.S. stock exchange and an initial public offering, it said in a press release issued Friday morning.
Under its reorganization plan, iHeart is required to “use reasonable best efforts” to list its Class A common stock “on a recognized U.S. stock exchange” following completion of its restructuring process. The company says it's “currently in the process of evaluating all such potential paths.”
In a crucial milestone iHeart received court approval for its comprehensive financial reorganization plan in January, and says it expects to complete the restructuring process in the second quarter. The company filed for Chapter 11 on March 14, 2018, after reaching an agreement in principle with the majority of its creditors and financial sponsors. Under the terms of the plan, iHeart will reduce its debt from $16.1 billion to $5.75 billion and will separate sister billboard company Clear Channel Outdoor Holdings from iHeartMedia, creating two independent public companies.