That's the word coming from very close sources to the Mays brothers.
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Clear Channel to file Chapter 11 in August!
- Thread starter BossJock1947
- Start date
It's the logical next step.....this would allow many contracts to be reworked or dismissed, and create new pressures to renegotiate CC's huge debt.
After this week's Phase 2 employee cuts, the contract staffs around the country should be sweating bullets soon.
Ad revenues are simply not going to bounce back for a long, long time...and with most of the non-contract employees thinned out now, those with substantially bigger paychecks will be next...single-host news blocks, expanded use of split-shifts, solo traffic updates, reduced local/regional reporting...everything will be dictated completely by how cheaply it can be produced....
After this week's Phase 2 employee cuts, the contract staffs around the country should be sweating bullets soon.
Ad revenues are simply not going to bounce back for a long, long time...and with most of the non-contract employees thinned out now, those with substantially bigger paychecks will be next...single-host news blocks, expanded use of split-shifts, solo traffic updates, reduced local/regional reporting...everything will be dictated completely by how cheaply it can be produced....
BurnedOutOnTheBoards said:
My My how CC, Cumulus and CBS have systematically destroyed an industry and they don't even care one bit. :'(
Yabba, dabba, doo! Somewhere all those people who got hosed by Cheap Channel are singing sweet vindication. The best part is the worst is yet to come. Whoever, coined the phrase, "the wheels of justice grind exceedingly slow" was a genius! ;D
BossJock......
No question......like other sectors of the economy, all the suits clearly thought the golden path of double-digit growth would continue endlessly, so they borrowed themselves into massive debt, then started slashing at the one level that actually created what the public wants.
Just once, I'd like to see a major corporation - especially within the mindless media culture - start restructuring by shrinking corporate first, THEN making intelligent cuts at stations...
But...I dream on....
VidKill.....
Sadly, for a lot of talented folks, I agree that "the worst is yet to come".....bankruptcy will allow, to some degree, CC the chance to slash contracted help...and where would those talents go if they told CC to shove it and quit? Private consulting? Not a chance...consultants fall off the trees outside most stations now. Other radio companies? Who's hiring there?
Now....if the Mays and others who sucked massive "profits" out of the company for years get crushed...well, gee, I'm all busted up over that prospect.....
No question......like other sectors of the economy, all the suits clearly thought the golden path of double-digit growth would continue endlessly, so they borrowed themselves into massive debt, then started slashing at the one level that actually created what the public wants.
Just once, I'd like to see a major corporation - especially within the mindless media culture - start restructuring by shrinking corporate first, THEN making intelligent cuts at stations...
But...I dream on....
VidKill.....
Sadly, for a lot of talented folks, I agree that "the worst is yet to come".....bankruptcy will allow, to some degree, CC the chance to slash contracted help...and where would those talents go if they told CC to shove it and quit? Private consulting? Not a chance...consultants fall off the trees outside most stations now. Other radio companies? Who's hiring there?
Now....if the Mays and others who sucked massive "profits" out of the company for years get crushed...well, gee, I'm all busted up over that prospect.....
"Bishop Cheen, who follows corporate bonds for Wachovia, wrote recently that Clear Channel was on track to become the biggest default among media companies and therefore the biggest workout ever in the industry.
"The company’s options may be limited. 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."
Bain and Lee paid $18 billion for to acquire CC and also assumed $5 billion in outstanding debt. Later in the article, an analyst at Moody's said that "Should the market rebound, the company could be worth about $12 billion." But Mr. Cheen estimates its market value today at less than $6.3 billion, saying, "The market has gone from irrational exuberance to excessive awfulness."
http://www.nytimes.com/2009/04/30/business/media/30clear.html?ref=media
"The company’s options may be limited. 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."
Bain and Lee paid $18 billion for to acquire CC and also assumed $5 billion in outstanding debt. Later in the article, an analyst at Moody's said that "Should the market rebound, the company could be worth about $12 billion." But Mr. Cheen estimates its market value today at less than $6.3 billion, saying, "The market has gone from irrational exuberance to excessive awfulness."
http://www.nytimes.com/2009/04/30/business/media/30clear.html?ref=media
Woo-hoo!!!! Maybe the CC Joker will make its last laugh in the headquarters at Gotham City. August will be the death of the Joker in which Batman will defeat. The CC Joker will end of all evils as he make his exit into the bottom of the pit.
disney fanatic said:
I think Citadel will beat CC to THAT
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