US radio and podcast giant Audacy filed for bankruptcy protection on Sunday (January 7) due to falling advertising revenue and “macroeconomic challenges.”
Audacy has filed for bankruptcy in the Bankruptcy Court for the Southern District of Texas after reaching a restructuring agreement with most of its debtors, David Field, chairman, president and chief executive officer of Audacy, said in an announcement Sunday. Application for protection.
Under the restructuring agreement, the company will reduce its total debt by 80%, from about $1.9 billion to about $350 million. Audacy said the restructuring will better position the company for long-term development and does not expect the restructuring to have an impact on the company’s operations, trading or other unsecured creditors.
Field said in a statement that the company has strategically transformed Audacy into a leading, scaled, multi-platform audio content and entertainment company and strengthened its competitive position over the past few years. But over the past four years, a perfect storm of ongoing macroeconomic challenges facing traditional advertising markets has caused broadcast ad revenue to plummet by billions of dollars.
He added that these market factors “severely impacted our financial position, necessitating a restructuring of our balance sheet”.
“With our scaled leadership, uniquely differentiated premium audio content and robust capital structure, we believe Audacy will be well-positioned to continue to innovate and grow in the dynamic audio business,” Field said.
Founded in 1968 and headquartered in Philadelphia, Audacy owns many well-known radio channels, sports and podcasts in major cities, such as New York sports station WFAN and Los Angeles commercial radio station KRTH. After acquiring CBS Radio, Audacy owns hundreds of radio stations and becomes the second-largest broadcaster in the United States.
Under the agreement announced by Audacy on Sunday, the debtors will receive equity in the company.
The court is expected to hold a hearing in February to consider approval of the restructuring plan.
