iHeartMedia, Inc.is an American mass media corporation headquartered in San Antonio, Texas. It is the holding company of iHeartCommunications, Inc. (formerly Clear Channel Communications, Inc.) which owns and operates iHeartRadio. Days after many celebrities received their 2018 iHeart Music Awards they company has announced that they are $20 Billion Dollars in debt and plan to file for Chapter 11 Bankruptcy.When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.In Chapter 11 Bankruptcy, in most cases the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court
Chapter 11 usually results in reorganization of the debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy.CEO Bob Pittman spoke out about the case in detail and talked about the struggles the company was facing. Pittman said the company is filing Chapter 11 bankruptcy and has enough cash to keep themselves running until the bankruptcy proceedings are done.
Until then their assets will not be litigated until their debt is paid off. If the business is insolvent, its debts exceed its assets and the business is unable to pay debts as they come due, the bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company which could be worth nothing since the Bankruptcy was filed. This would mean those left with ownership would have to make sure they can run what's left to them and at the same time make it a profitable business from the ground up which will take much rebuilding and restructuring.