Talk about carrying a big credit card interest payment.
Clear Channel has to pay $1.3 billion a year on its debt, according to a New York Times story about the company’s business situation that quickly made the industry rounds. The paper reported that the company needs more than $1.5 billion in cash flow this year.
“The company’s options may be limited,” it reported. “Many financially pressed concerns have been able to persuade creditors to exchange debt for equity and thus avoid a default and a bankruptcy filing. At Clear Channel, getting creditors to go along with such a plan could be tough because the original deal was fraught with so much ill will, including an unusual court fight.”
Read the Times’ analysis here.