With Over 14,000 Employees, iHeartMedia Just Filed For Bankruptcy Owing $20 Billion

iHeartMedia, the largest existing US radio company, has ficially declared bankruptcy.

In filing for Chapter 11, iHeartMedia has also put in place a to get a grip on its overwhelming debt. Thanks to a new in-principle agreement with creditors, the company has hopes reducing its debt by more than $10 billion.

iHeartMedia racked up $20 billion worth debt and has suffered from falling revenue over the company’s 858 radio stations. More than ever, iHeartMedia, along with its iHeartRadio stations and the iHeartRadio app, can feel the pressure to hang with leading music platforms like Spotify and Apple Music.

Chief Executive Bob Pittman the Chapter 11 filing on behalf iHeartMedia: “The agreement … is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure.”

John Malone’s Liberty Media  a deal to buy a 40 percent stake in the restructured iHeartMedia plan for $1.16 billion. This move unites the company with Liberty’s Sirius XM Holdings satellite radio service.

For the company and its 14,300 employees, business will go on as usual for now.