IHeartMedia Inc (IHRT.PK), the largest owner of U.S. radio stations, said there is substantial doubt about its ability to continue as a going concern.
IHeartMedia, which says it has more than a quarter of a billion monthly radio listeners in the United States, is struggling to find a solution that would significantly slash its debt pile outside of bankruptcy court.
As of March 31, the company had debt of $20.37 billion and total assets of $12.27 billion. It had $365 million of cash and cash equivalents on its balance sheet as of March 31.
IHeartMedia indicated in a regulatory filing on April 20 that it would issue a going concern warning.
IHeart, formerly known as Clear Channel Communications Inc, was taken over by private equity firms BainCapital LLC and Thomas H. Lee Partners through a leveraged buyout in 2008 for $26.7 billion, piling up the company with huge debts.
The company hosts syndicated radio shows of celebrities such as Steve Harvey, Ryan Seacrest and Rush Limbaugh.
Separately, the company reported a first-quarter net loss of $388.2 million, compared with $88.5 million a year earlier.