There’s a new threat to iHeartMedia‘s bid to “avoid bankruptcy.” That’s according to Reuters, citing “people familiar with the matter.” The news organization reports that a group of the company’s lenders has signed a “cooperation agreement” to oppose a debt restructuring agreement proposed by the nation’s No. 1 owner of AM and FM radio stations.
In order to move forward with a debt exchange, needed to finalize a planned restructuring of its finances, iHeart is required to obtain approval from more than half of its term loan holders. Reuters says this will not happen. The sources told the news organization that iHeart must “significantly improve on its loan swap offer, or propose a new way to tackle the debt altogether.”
iHeart did not respond to Reuters’ request for comment late Friday (4/21).
The report comes following a late Thursday (4/20) SEC filing by iHeart in which it offered a lackluster Q1 2017 earnings preview and warned that “there will be substantial doubt” as to its ability to continue as a going concern for a period of 12 months from the date of the formal release of its Q1 2017 results.