Audacy Files for Chapter 11 Bankruptcy Protection to Reduce Debt
Audacy, the radio and podcast giant, announced on Sunday that it has filed plans for Chapter 11 bankruptcy protection in Texas in order to significantly reduce its debt.
The restructuring agreement will enable Audacy to reduce its total debt by 80%, bringing it down to approximately $350 million from its previous level of around $1.9 billion.
“Over the past few years, we have strategically transformed Audacy into a prominent and successful multi-platform audio content and entertainment company,” stated David Field, CEO of Audacy.
However, Field acknowledged the existence of “the perfect storm” caused by numerous macroeconomic challenges that have plagued the traditional advertising market over the last four years, resulting in a sharp decline in radio advertising expenditure.
“These adverse market conditions have significantly affected our financial standing and led us to pursue a restructuring of our balance sheet,” explained Field.
Headquartered in Philadelphia, Audacy owns a vast network of radio stations and is recognized as one of the leading radio broadcasters in the United States. Among its notable stations are WFAN Sports Radio, New York’s 1010 WINS, and KCBS.