In seven separate Form 314 filings made with the FCC on Tuesday, reflecting the unique licensee names used by the nation’s No. 1 owner of AM and FM radio stations, iHeartMedia officially presented to the Commission its Chapter 11 restructuring plan — and how it plans to operate once it emerges from debtor-in-possession status.
The biggest takeaway from the filings involves the role Liberty Media will have. Additionally, iHeart will need to sell off two small-market stations.
The seven “applications for consent to assignment of broadcast station construction permit or license” reflect iHeart’s ownership of AMFM Broadcasting Licenses LLC, AMFM Radio Licenses, AMFM Texas Licenses LLC, Capstar TX LLC, Citicasters Licenses Inc., Clear Channel Broadcasting Licenses Inc., and CC Licenses LLC.
Each of the Form 314 filings contain the same information: A “Comprehensive Exhibit,” a “Plan of Reorganization,” and a “Disclosure Statement,” in addition to LMA details.
The 25-page Comprehensive Exhibit outlines iHeart’s request for Commission consent to enact its joint plan of reorganization — and exit Chapter 11 bankruptcy successfully.
The plan in front of the FCC is the fourth amended roadmap for iHeart; the initial version of its Chapter 11 exit plan was filed April 28.
As of the filing of the Form 314 applications, iHeart anticipates that only one entity will hold an attributable percentage of its Class A Common Stock upon consummation of its Chapter 11 departure plan.
That would be Mould Fountain Funding, and its 100% parent — Liberty Media Corp.
Following iHeart’s emergence from bankruptcy, Mould (and, theoretically, Liberty), would hold between a 6% and 10% voting interest in iHeart.
Other post-reorganization shareholders will have less than a 5% voting interest.
The reorganization of iHeart, in the eyes of the FCC, wipes clean any grandfathered rulemaking for the company formerly known as Clear Channel Communications.
As such, iHeart’s existing station combinations are in compliance in all but two markets: Brunswick, Ga., and Grand Forks, N. Dakota-Minn.
As a result, iHeart has agreed to sell a FM station in each of these markets. For now, they will be placed in a divestiture trust; this means the stations could be sold at a much later date.
Shareholders have until Nov. 9 to vote on the Chapter 11 reorganization plan as approved by a Houston U.S. Bankruptcy Court.