Audacy is a Philadelphia-based multi-platform audio content and entertainment company that is engaged in the radio broadcasting business in the United States. The company oversees a massive trove of radio and podcast operations in North America and around the world. It had also previously acquired CBS Radio.
This past week, Audacy said that it had filed for a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. That comes after Audacy had moved forward with a restructuring agreement with most its debtholders.
With the new agreement, Audacy will reportedly cut approximately 80% of its nearly $2 billion in debt. The company said that the restructuring will allow it to better position itself for long-term growth. Moreover, Audacy does not expect that the filing will impact its regular operations, trade, or other unsecured creditors.
David J. Field, Audacy Chairman, President, and CEO, said that the company had faced major challenges due to the sharp reduction in advertising spending through the radio medium. However, Field has continued to be optimistic about the company’s future. “With our scaled leadership position, our uniquely differentiated premium audio content and a robust capital structure,” said Field. “We believe Audacy will emerge well-positioned to continue its innovation and growth in the dynamic audio business.”
Reports indicate that the Court will hold a hearing to consider the plan’s approval this Friday, January 12. If the agreement is approved, debtholders will receive equity in Audacy.
