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Coming attractions: iFart bankruptcy by early March

Topics of general interest that just don't fit anywhere else.
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MWmetalhead
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Joined: Sun Oct 31, 2004 11:23 am

Coming attractions: iFart bankruptcy by early March

Post by MWmetalhead » Sat Feb 03, 2018 10:47 am

The company has decided not to make a $106 million interest payment on its unsecured notes that came due on Thursday, February 1.

This triggers an automatic 30-day grace period.

If the company doesn't make the payment by the end of that period, or if it fails to reach a comprehensive debt restructuring agreement with all lenders on an out-of-court basis, it will have no choice but to file Chapter 11.

https://www.mysanantonio.com/business/l ... 542717.php
https://www.marketwatch.com/story/ihear ... 2018-02-01

When a bankruptcy filing is imminent, companies almost always choose to skip scheduled debt payments to junior creditors because (a) the company would rather keep the cash on hand to help fund operations during bankruptcy and (b) any such payment to a non-senior lender would be subject to preference claw back under the bankruptcy code anyway.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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Otter Mii-kun
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Joined: Fri May 25, 2012 10:42 pm

Re: Coming attractions: iFart bankruptcy by early March

Post by Otter Mii-kun » Sat Feb 03, 2018 11:36 pm

I've had this feeling that, when Cume-U-Less filed BK awhile back, that iFart wouldn't be too far behind in following. iFart's bankruptcy filing has long been a matter of when, not if.

This looks like it's gonna be fun opening up a can of worms! :razz


Isn't it nice how deregulation has brought us such oversized and dangerously overleveraged broadcast owners? (Yes, I'm looking at YOU, Sinclair, Nexstar, Cume-U-Less, and iFart!)

Deleted User 10525

Re: Coming attractions: iFart bankruptcy by early March

Post by Deleted User 10525 » Sun Feb 04, 2018 2:42 am

Well... I'm not a financial expert and am not honestly familiar with all the bankruptcy chapters, although I do know 7 means totally liqudatcian, the business is over. 13 and 11 I get confused on. This all doesn't shock me however. Like the cloud, the whole thing got so big , its become a monster. I assume that there are big differences between the 2, in terms of how they got to this place and where to go.

With this and Cumulus, I think it could be a fun year in radio.



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