Report: Audacy To File For Bankruptcy Within Weeks – RadioInsight
Audacy, a prominent multi-platform audio content company, has initiated prepackaged Chapter 11 bankruptcy proceedings in the US Bankruptcy Court for the Southern District of Texas. Facing substantial debt and a decline in advertising revenue, the company aims to reduce its debt from $1.9 billion to $350 million through a restructuring agreement. David Field, Audacy’s Chairman, President, and CEO, attributed the need for bankruptcy to sustained macroeconomic challenges in the traditional advertising market over the past four years, resulting in a significant reduction in radio ad spending.
Despite being delisted from the New York Stock Exchange in November 2023, Audacy expresses confidence that the restructuring will not adversely affect advertisers, partners, or employees. Field emphasized Audacy’s scaled leadership position, distinctive premium audio content, and robust capital structure, foreseeing the company’s emergence well-positioned for continued innovation and growth in the dynamic audio business.
In a bid to address financial struggles, Audacy had engaged in “constructive conversations” with lenders, as mentioned in its 2023 third-quarter earnings release. A May SEC filing highlighted the impact of “current macroeconomic conditions,” including high inflation and heightened competition for advertisers, on the company’s revenue forecast, leading to an inability to meet debt obligations. Founded in 1968 and headquartered in Philadelphia, Audacy operates in numerous US radio markets.
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