iHeartMedia’s Thin Skin on Corporate Finances

A funny thing happened just hours after I posted last week’s update on iHeartMedia’s dance with bankruptcy earlier this year: I got an e-mail from a PR flack contesting my analysis. But it wasn’t just any flack — it was Wendy Goldberg, iHeart’s chief communications officer. She was displeased with several points I made.

To begin, Goldberg asserted that I had misconstrued the timeline of events surrounding the company’s near-default. Instead, iHeart conducted a pre-emptive strike against “a small group of lenders” who planned to call in some $6 billion of the company’s $20+ billion outstanding debt burden within 60 days. (This would indeed have immediately tipped the company into default.) Secondly, my she called my assertion that this close call, in my words, worried “the market that the conglomerate is just steps away from bankruptcy” was seemingly, in her words, “confused at best, and speculation at worst.”

Finally, Goldberg took umbrage with my contention that iHeartMedia remains near the precipice: “I am assuming this is your own opinion or speculation, and if so you should either couch it as such or remove it.” Read More

iHeartMedia Seeks Pounds of Flesh for Bankruptcy Pressure

After fending off one legal challenge that would’ve sent the company into default, the nation’s largest radio conglomerate now seeks a spot of revenge.

iHeartMedia is heading back to a Texas courtroom in hopes of getting mega-damages out of a consortium of investors who went after the company, serving a notice of default for playing fast and loose with its $20+ billion worth of debt — a strategy which involves iHeart setting up shell companies to repurchase some of the debt it already owes at lower interest rates, while also working to shield some assets from potential creditors. The conglomerate filed suit to stop the default process, and the Bexar County judge sided with iHeart in May. Read More

Bring the Noise (Floor)

In a little-covered meeting earlier this summer, the FCC’s Technological Advisory Council voted to proceed with what could potentially be a controversial study of noise across the electromagnetic spectrum. This two-page PDF outlines the TAC’s proposal and asks several questions about what such a study should cover, and how to go about doing it.

Many FCC-watchers seem pleasantly surprised that the TAC is wading into this mess. The study itself will be broken down along two lines: attempting to quantify interference from intentional and unintentional radiators. Intentional radiators are sources of potential noise that mean to broadcast — think radio and TV stations, wireless routers, and the like. Unintentional radiators are things that emit RF energy (and potential noise) but that is not their primary reason for being — think most electronic devices, older-model LED systems, and whatnot. Read More