Philadelphia-based Audacy, one of the largest operators of commercial radio stations in the U.S., has filed plans for a Chapter 11 bankruptcy filing in a restructuring agreement with debt holders that will slash its debt by 80%.
Audacy owns more than 200 radio stations across the country, including 94.7-FM WIAD “The Drive,” 106.7-FM WJFK “The Fan,” 95.5-FM WPGC and WTEM 980-AM “The Team” in the D.C. market. Its flagship radio stations include all-news stalwarts New York’s 1010 WINS, KNX in Los Angeles and San Francisco’s KCBS.
Audacy said the restructuring agreement with the majority of its debt holders will cut its debt from $1.9 billion to $350 million. It said the restructuring will not immediately impact any of its stations’ operations.
Audacy acquired CBS Radio in 2017.
“The perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative ad spending,” said Audacy CEO David Field in a statement. “These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring.”
The restructuring plan will be heard by a bankruptcy court in Texas in February and requires approval by the Federal Communications Commission.
Audacy has enlisted D.C. firms as part of its reorganization process, including D.C.-based law firm Akin Gump Strauss Hauer & Feld, and D.C.-based FTI Consulting.
Audacy is publicly traded, but its stock is expected to be canceled as part of its organization, meaning no shareholder distribution. Its shares were delisted by the New York Stock Exchange last year after trading below the exchange’s required minimum share price.
Audacy, which is also one of the largest podcast producers in the country, was founded in 1968 as Entercom Communications. It rebranded as Audacy in 2021.
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