As probably everyone here knows, iHeart joined Cumulus at the Chapter 11 bankruptcy party. I want to make sure that people know what this means to the day-to-day operations of both groups' stations.
People tend to freak out when they hear the word bankruptcy. Just to make it clear, nobody should be freaking out over a Chapter 11 filing. In fact the other huge business in the news this week for bankruptcy, Toys R Us, filed Ch 11 last September. Nothing changed for the consumer until this week. Further, there's a good chance that business people will actually look at the iHeart/Cumulus filings as a GOOD thing in the long term. This allows the companies to protect themselves, which is all Ch 11 is. There's some good layman's background in a Time article from last September about Toys R Us, but the idea is the same. time.com/4947682/toys-r-us-chapter-11-bankruptcy/
On the other hand, if any major radio group were to file Chapter 7 bankruptcy, the radio industry would be running around like their hair was on fire.
Last Edit: Mar 16, 2018 8:35:29 GMT -7 by CAwasinNJ
Thanks for the clarification, CA. Hopefully filing chapter 11 will help Cumulus and iHeart's financial woes and not be a precursor to chapter 7 like the Toys R Us liquidation. 31,000 Toys R Us employees will soon be out of a job with no severance package--ouch! As much as I hate corporate radio like iHeart and Cumulus, I don't wish them any ill will. I've been without a job two or three times in my life, and it's not an enjoyable experience.
FWIW, these articles from InsideRadio echo what you've already said about iHeart's chapter 11 filing:
That is not what that story says, nor does anything else from any news organization I've seen.
There are dozens of stories about the liquidation but that is not necessarily the same thing as converting the chapter 11 to a 7. That MAY be what's happening but I haven't seen anything yet saying so.
Liquidating Toys R Us' assets and shutting down all their stores in the U.S. and UK sounds like chapter 7 to me, but of course it's debatable. There's always the slim chance that someone will buy the chain at the 11th hour, but it seems doubtful. They've already begun the process of shuttering their stores in the UK, and have announced that they will only honor gift certificates until April 15th. So if anyone reading this has a Toys R Us gift certificate left over from Christmas, I suggest you redeem it while you still have the chance.