Certain members of iHeartMedia’s cooperation group have executed non-disclosure agreements with the company in order to review the restructuring proposal recently sent to the group’s advisors, according to sources. The process of getting members signed up to review the proposal began last week, sources add.

The company, which is advised by Moelis & Co. as financial advisor and Kirkland & Ellis as legal counsel, sent a proposal to the cooperation group’s financial advisor PJT Partners and legal counsel Jones Day earlier in January. The proposal was sent after the cooperation group hosted a two-day creditors meeting in San Francisco, during which representatives of the legacy noteholders, the PGN noteholders, term loan lenders and 14% senior noteholders presented their asks for a restructuring proposal.

At the meeting, as reported previously, representatives from the term loan lender group represented by Ducera and Arnold & Porter Kaye Scholer, a legacy noteholder group represented by White & Case, and the 14% noteholder group represented by GLC Advisors and Gibson Dunn presented their asks for a restructuring proposal, with the bid/ask between creditors appearing to be less than $100 million. Certain members of the cooperation group - which has a blocking position against the company’s outstanding exchange offers - said in San Francisco that they would not allow more than $400 million in value leakage to the bottom of the capital structure, but other members of the cooperation group said they would be willing to allow $475 million in value leakage on the basis of their understanding that the additional $75 million may get a deal done with creditors, as reported previously.

Representatives of the legacy noteholder group requested recovery in the range of low 50 cents on the dollar and representatives from the 14% noteholder group said they would not take less than mid-teens recovery, in addition to warrants.

Subsequent to the meeting, beneficial owners of an aggregate amount of approximately $670 million, or 38% of the outstanding amount, of 14% senior notes due 2021 released their guarantees under the 14% notes in order to avoid certain aspects of a turnover provision tied to the guarantees. The 14% noteholders’ release does not change their ask from that presented in San Francisco, according to sources.

The parties are seeking to reach a consensual restructuring agreement in order to avoid a free-fall bankruptcy filing. iHeart has a Feb. 1 coupon payment on its $1.76 billion of 14% 2021 notes and year-end financials (typically arriving in late February or early March), which the company’s auditor will need to evaluate to determine whether the company can continue as a going concern. The company paid the 10% senior notes due Jan. 15 at maturity, as reported previously.

The company and private equity sponsor Thomas H. Lee Partners declined to comment for this story. Private equity sponsor Bain Capital did not respond to request for comment.