IHeartMedia Inc.’s bankruptcy-reorganization plan continues to face pushback from the U.S. Securities and Exchange Commission, the U.S. trustee and a group of longtime unsecured bondholders holding about $475 million in debt, WSJ Pro Bankruptcy reported. IHeart, which has more than 850 radio stations, filed for bankruptcy in March after nearly a year of talks with its creditors on the terms for restructuring its debt, much of which was left over from a 2008 leveraged buyout. The chapter 11 proceeding would slash about $10 billion in debt while handing over nearly all of the equity in a reorganized iHeart to a group of senior creditors led by Franklin Advisers Inc. The SEC, the U.S. trustee and the group of unsecured legacy bondholders on Wednesday all filed papers in U.S. Bankruptcy Court in Houston asking the court to not confirm the proposed reorganization plan. A confirmation hearing is scheduled for Dec. 11.
