Thursday was a busy day in a Texas Federal Bankruptcy Court for the nation’s biggest owner of radio stations. Among the approvals granted to iHeartMedia were orders authorizing the company to obtain financing upon its emergence from debtor-in-possession status, and the approval of iHeart’s 2018 incentive plan for “non-insiders.”
As of 10:45am Central on June 8, no less than 920 documents have been filed with the U.S. Bankruptcy Court for the Southern District of Texas in bankruptcy petition No. 18-31274, filed March 14 by San Antonio-based iHeart, formerly known as Clear Channel Communications.
In a 230-page entry No. 918 made Thursday, an order authorizing iHeart to obtain “postpetition financing” was granted by Houston-based bankruptcy judge Marvin Isgur.
This gives iHeart the opportunity to move forward with a senior secured asset-based revolving credit facility (known as a “DIP facility”) of up to $450 million, with an incremental $100,000 accordion facility, a sublimit for letters of credit of $175 million, and a sublimit for swing line loans of $50 million — the actual available principal amount “thereunder at any time being subject to those conditions set forth in the DIP documents” to be arranged by Citibank.
In a separate filing, Judge Isgur granted a motion that authorizes and approves iHeartMedia’s 2018 Debtors’ Incentive Plans. These are for “non-insiders,” and was designed to encourage iHeart staff to remain in their positions during the bankruptcy reorganization process.