iHeartMedia stock dropped $23.64% Monday, after the company shared that its next quarterly report to investors will include a warning “as to our ability to continue as a going concern” over the next 12 months. The company also reported a 2.4% decline in revenue over the previous year.
The stock has already fallen almost 5% on Friday.
The broadcast radio and streaming giant is struggling under $20 billion in debt, and a group of key lenders are reportedly banning together to block any debt restructuring, according to Reuters. The "going concern" warning could be a ploy designed to encourage investors to be more flexible. iHeartMedia needs over 50% of the debt holders to approve a debt swap to complete a proposed restructuring.
iHeartMedia owns 850 stations that reach more than 110 million listeners every week, and 245 million every month. The company is also a major player in online broadcasting with iHeartRadio. It recently launched a paid subscription music service in conjunction with Napster.