Radio giant iHeartMedia files for Chapter 11 bankruptcy. Its apps and events play on

Mike Snider | USA TODAY

Show Caption Hide Caption Radio giant iHeartMedia files bankruptcy plan to reduce debt Radio giant iHeartMedia files bankruptcy plan to reduce debt

Corrections & Clarifications: An earlier version of this story misstated Cumulus Media’s ranking.

The nation's largest radio station operator, iHeartMedia, has filed for Chapter 11 bankruptcy to shed billions of debt it has carried for more than a decade.

The San Antonio-based company, which has more than 850 radio stations, says it will continue to keep operating after reaching an agreement with creditors for more than $10 billion of its $20 billion in debt.

That means its popular iHeartRadio streaming radio app, which has 270 million monthly listeners, will continue to be found on smartphones, video game consoles and other devices. Its local radio stations will continue to broadcast.

More: Streaming music: A tough business signals shake out ahead

iHeartRadio will also continue to conduct its splashy, big-name events such as Saturday's iHeartRadio Music Awards, which featured Ed Sheeran, Cardi B, Chance the Rapper and Bon Jovi.

Stars sparkle at iHeartRadio Music Awards Jenna Dewan Tatum, Laverne Cox, Ashanti, Eve and Iggy Azelea discuss their fashion choices on the red carpet at the iHeartRadio Music Awards. (March 12)

And it's still planning the iHeartCountry Festival featuring Luke Bryan, Keith Urban and Maren Morris (May 5 in Austin, Tex.), and the iHeartRadio Music Festival, usually held in September in Las Vegas.

“The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure," said iHeartMedia CEO and chairman Bob Pittman in a statement announcing the deal.

Originally known as Clear Channel, the company changed its name to iHeartMedia in 2014 as part of its evolving online strategy. Its iHeartRadio streaming radio app lets users tune into thousands of stations, some live broadcasts and some customized such as the current Shamrock Radio station.

iHeartMedia also includes Clear Channel Outdoor, one of the nation's largest billboard advertising companies. That unit is not part of the bankruptcy proceeding.

The company's debt ballooned after it was acquired in a leveraged buyout in 2008 by private-equity firms Bain Capital and Thomas H. Lee Partners.

Swift and Sheeran big winners at iHeartRadio Music Awards Taylor Swift won Female Artist of the Year, Ed Sheeran accepted Song of the Year for "Shape of You" and Cardi B took home Best New Artist at the iHeartRadio Music Awards. (March 12)

Like other media companies, iHeartMedia has struggled with declining advertising revenue. At the same time, the radio operator has faced growing competition from music streaming services such as Spotify and Pandora.

Revenue growth has been anemic.. iHeartMedia has been negotiating with debtors for more than a year on a restructuring plan, as way to achieve more solid financial footing.

The filing in the U.S. Bankruptcy Court for the Southern District of Texas in Houston came came just over one month after the company missed a $106 million debt payment, which triggered a 30-day grace period and multiple extensions for talks with creditors.

iHeartMedia's situation highlights the financial struggles facing the radio industry. The nation's third largest radio chain, Cumulus Media, has faced similar challenges. Listeners increasingly choose other mediums, like online streaming, over terrestrial radio.

After iHeart missed its debt payment in February, Liberty Media made a $1.16 billion offer for a 40% stake in the company. As negotiations between the two companies progressed, Liberty purchased $400 million of iHeart's debt.

Liberty Media counts SiriusXM, Formula One auto racing and the Atlanta Braves baseball team among its assets.

Nate Rau of The Tennessean contributed to this story.

Follow USA TODAY reporter Mike Snider and The Tennessean's Nate Rau on Twitter: @MikeSnider & @tnnaterau.