The way in which people consume media in the United States and across the world has dramatically shifted over the years. Before most households had access to television, people relied on the radio as a source of information and entertainment. Even now, many people still tune in to their favorite radio shows whether it is to get the morning’s traffic report or to listen to music. However, given everyone’s ability to stream music and get information in different forms of media, radio stations and their companies are having a hard time staying afloat.
iHeartRadio, which owns about 850 radio stations in the United States, as well as the second largest radio company, Cumulus Media, are filing for bankruptcy protection. There isn’t too much to worry about here simply due to the fact that bankruptcy will allow these companies to take the necessary time to restructure their businesses.
When a business files for chapter 11 bankruptcy, they are able to work with their creditors and the bankruptcy court to come up with a “reorganization plan.” Some of the aspects of a reorganization plan include getting rid of overhead costs if possible, cancel contracts that do more harm than good, and restructure debt by paying off a portion of debts as well as eliminating the balance.
If you have questions about how bankruptcy can help your business, contact our firm today.
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.
