Audacy Inc. filed. The radio and podcast giant filed for Chapter 11 bankruptcy protection on Sunday amid a deteriorating advertising market.
Philadelphia-based Audacy AUDA,
It announced a “comprehensive restructuring” on Sunday, seeking to reduce about 80% of its $1.9 billion debt to about $350 million.
“The perfect storm of persistent macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp multi-billion-dollar decline in cumulative radio ad spending,” David J. Field, CEO of Audacy, said in a statement. “These market factors have severely impacted our financial position and necessitated a restructuring of our balance sheet.”
The company said the vast majority of creditors approved the reorganization plan, allowing Audacy to file a pre-packaged bankruptcy, intended to speed up the process.
Audacy acquired most of its debt after merging with CBS Radio in 2017. It owns hundreds of radio stations across the United States, including WFAN and WINS in New York, KROQ in Los Angeles and KCBS in San Francisco.
The company said it expects its bankruptcy plan to be heard in court in February, and it plans to emerge from bankruptcy after receiving FCC approval. Audacy said it expects to function normally during this process.
Audacy shares were delisted from the New York Stock Exchange in November, and are now trading over-the-counter. The stock has fallen 97% over the past 12 months, closing Friday at 19 cents, with a market value of about $946 million.
