After suffering a $428 million first-quarter loss and carrying the load of about $22 billion in total debts, Clear Channel may have to explore the option of selling more of its radio stations. A new article from the San Antonio Express-News says that analysts believe Clear Channel will have trouble making scheduled payments to its lenders later this year. The company, down to about 800 stations from its peak of about 1,200, either will have to start selling radio properties or go into bankruptcy, where lenders will put stations up for sale. With slumping advertising revenues and little prospect for refinancing its debt, there may be no other option for the broadcaster.

"It's a perfect storm," author and radio industry forecaster Alec Foege told the Express-News. "The financial moves by Clear Channel were aimed at enriching the executive team at the expense of the shareholders. There's still financial acumen at the company, but it doesn't extend to solving its financial problems in terms of marketing its core product."

Earlier this month, Clear Channel announced that it wanted to reposition debt between its radio and billboard divisions. However, the lenders who financed the private equity acquisition of the company said they would block the move because they would rather wait on it in hopes that Clear Channel violates its lending agreements. That way the lenders can take control of its assets at a discount and then sell them. The lenders reportedly feel that this is the way to get the most amount of money back from the loans they made when Bain Capital and Thomas H. Lee Partners acquired Clear Channel in 2008. But as of right now, Clear Channel is not violating any agreements and the negotiations are continuing.

Foege believes several radio companies would be happy to get in on a bidding war for Clear Channel radio stations, such as CBS Radio, Citadel Broadcasting or Emmis Communications.

"Radio is not headed for extinction. Advertising will return at some point," Foege told the Express-News. "Radio offers value, even compared to the Internet. The Internet doesn't yet serve local markets as well as radio... Free commercial radio is still compelling. It's hard to argue with free. There are still listeners, and advertisers realize this."