Chapter 11 (ie iHeart and Cumulus)
Mar 16, 2018 9:34:31 GMT -6
Post by CAwasinNJ on Mar 16, 2018 9:34:31 GMT -6
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.
Nothing.
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.
Nothing.
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.
