Audacy, a prominent radio and podcast company, announced on Sunday that it has filed for Chapter 11 bankruptcy, attributing the decision to “macroeconomic challenges” prompting the need for restructuring.
As a major player in the radio broadcasting arena, Audacy is home to numerous broadcast, sports, and podcast shows, solidifying its position as one of the largest radio broadcasters in the United States. In a statement released on Sunday, David Field, the President and CEO of Audacy, disclosed the bankruptcy filing and shared that the company has entered into a restructuring support agreement with a supermajority of its debtholders.
“In recent years, we strategically reshaped Audacy into a leading, extensively scaled multi-platform audio content and entertainment company, marked by our acquisition of CBS Radio and the establishment of prominent positions in podcasting, audio networks, live events, digital marketing solutions, and our direct-to-consumer streaming platform,” stated David Field in a released statement.
Field acknowledged that the company faced a “perfect storm” of challenges over the past four years. Despite successfully transforming Audacy and strengthening its competitive stance, sustained macroeconomic challenges in the traditional advertising market resulted in a significant reduction of several billion dollars in cumulative radio ad spending. While emphasizing that the restructuring will not impact the company’s operations, Field noted that “trade and other unsecured creditors will not be impaired.” a prominent radio
Addressing the impact of sustained macroeconomic challenges on the traditional advertising market, Field explained that these factors had severely affected Audacy’s financial condition, necessitating a balance sheet restructuring.
The company initiated prepackaged Chapter 11 proceedings in the Southern District of Texas on Sunday, accompanied by a proposed plan of reorganization. If approved by the court, this plan aims to reduce Audacy’s funded debt from approximately $1.9 billion to around $350 million.