During a February 20 hearing, US Bankruptcy Judge Christopher López granted permission for Audacy to sell two properties in the Boston market. The sales come as Audacy navigates through a Chapter 11 restructuring in federal bankruptcy court.
The sales involve a Needham, MA property housing three radio station towers linked to WEEI-AM 850. This sale, to American Tower Corp. subsidiary ATS-Needham LLC, is set at $3.5 million. This transaction has been in motion since 2022, well before the bankruptcy filing.
The second property sale involves “83 Leo Property Owner LLC” and would pay Audacy, at minimum, $11.1 million at closing, plus a potential additional payment of up to $7 million based on future property valuations. This deal also includes a two-year leaseback arrangement for Audacy at a monthly rent of $40,000. The anticipated closure date is March 6.
The multi-million dollar payday will provide the troubled broadcaster with even more cash on hand after its equity interest in BMI sold brought in $25.4 million, following the music rights firm’s sale to New Mountain Capital.
Audacy filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of Texas on January 7. The company, moving forward with a restructuring plan backed by most of its debt holders, warns that existing shares are likely to be canceled, though trading continues for now. The restructuring is set to slash Audacy’s debt by 80%, cutting it down by $1.6 billion to roughly $350 million. This debt reduction is projected to proceed without disrupting the company’s operations or its obligations to trade and unsecured creditors.
