Proposal Could Save iHeartMedia From Bankruptcy

iHeartMedia may be close to avoiding bankruptcy thanks to a possible restructuring plan that would save the company.

The New York Post reports that the company, which finds itself $20 billion in debt, is working with the mutual fund Franklin Resources and investment bank PJT Partners.

Franklin, according to the Post, owns $2.3 billion of iHeartMedia's debt. The fund plans to present a proposal to iHeartMedia and its other creditors that would avoid selling iHeartMedia's most profitable radio stations and also would keep its chairman and CEO Bob Pittman in place.

Franklin has been considering selling off iHeartMedia's top-performing stations in order to pay off its creditors and get out of debt. The new plan would give some of its creditors a majority ownership stake in the business, and it also would require the company to issue new debt up to $1 billion.

iHeartMedia would still be able to say no to the plan being offered and instead file for bankruptcy.

iHeartMedia recorded a loss of $174 million in the second quarter of this year, the San Antonio Express-News reported.

The company recently signed Darren Davis, the president of iHeartMedia Networks Group, to a four-year contract extension. 

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