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iHeartMedia is a junk stock and will probably delisted from NYSE soon. Stuff Media will be gutted and lost in the ensuing chaos in the coming years as iHeart de
by Dirlewanger 8y ago
iHeartMedia is a junk stock and will probably delisted from NYSE soon. Stuff Media will be gutted and lost in the ensuing chaos in the coming years as iHeart desperately attempts again to restructure their debt. Both them and Cumulus Media serve as yet another sad tale of what happens when PEGs descend on in for the rape and pillage.
- pmoriarty 8y agoJust out of curiosity, what are PEGs?
- detaro 8y agoI'd guess "private equity $somethings"?
- Dirlewanger 8y agoPrivate equity groups. Several have been brokering their debt restructuring over the years. Here's their most recent complete restructuring from about a year ago (http://www.insideradio.com/free/restructuring-will-wipe-billion-of-iheartmedia-s-debt/article_a8f332f0-28e7-11e8-aa69-af3eb5d38002.html http://www.insideradio.com/free/restructuring-will-wipe-bill...) (they're currently in bankruptcy at the moment.)
- pmoriarty 8y agoSo what incentive do they have for "rape and pillage" of companies if they ruin them and themselves in the process?
- Spooky23 8y agoBecause the partners collect big fees on the way in and out. Toys R Us is a great example. The PEG people invested 20%, dumped the debt on the Toys R Us balance sheet, and yielded at least $200M in fees. They are also able to harvest paper losses to offset taxes.
- pmoriarty 8y agoPardon my ignorance, but who's paying their fees, and why would anyone pay fees to people who ruin companies and pocket fees for doing a poor job?
- Spooky23 8y agoThe acquired company. The people running the company are the people collecting the money. Why would they do so? They are “turning the company around!”.