Audacy has received approval from the US Bankruptcy Court for the Southern District of Texas for its Plan of Reorganization. The company now awaits final clearance from the Federal Communications Commission before officially exiting bankruptcy.
The approved Plan involves reducing the company’s funded debt by approximately 80%, from $1.9 billion to $350 million, without affecting trade and other unsecured creditors.
US Bankruptcy Judge Christopher López also granted permission for Audacy to sell two Boston-area properties in the Boston market for $3.5 million and $11.1 million respectively. The second sale also includes a two-year leaseback arrangement for Audacy at a monthly rent of $40,000. The anticipated closure date is March 6.
Audacy have been navigating its Chapter 11 restructuring in federal bankruptcy court since January 7.
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.
Soros Fund Management will become Audacy’s principal shareholder after acquiring over $414 million of Audacy’s senior debt, surpassing other key investors. This stake constitutes about 40% of Audacy’s total senior debt.
PJT Partners, FTI Consulting, and Latham & Watkins LLP are among the advisors assisting Audacy through this process, with additional financial and legal support provided to the lenders and debtholders by Greenhill & Co., LLC, Gibson, Dunn & Crutcher LLP, Evercore Group, LLC, and Akin Gump Strauss Hauer & Feld.
Audacy CEO David Field commented, “Today’s announcement marks a powerful step forward for Audacy, positioning the Company for an exciting future. As expected, we have achieved a speedy confirmation of our prepackaged Plan, which will enable Audacy to pursue our strategic goals and opportunities in the dynamic audio business.”
“We aim to drive accelerated growth and financial performance, capitalizing on our scaled, leadership position, our uniquely differentiated premium audio content and the robust capital structure that we will have upon emergence. I also want to express my gratitude to our team, who continue their outstanding work to serve our listeners and customers with excellence and fulfill our commitments without missing a beat.”
The ad load is what is killing radio. It’s driving people to podcasts. 37 minutes of content per hour drives away listeners.
How is it possible that the FCC and Congress consider corrupt George Soros a “qualified licensee” to own media properties considering his corrupt activities elsewhere?
How is it possible that David Field is still in charge? It truly boggles the mind. And no surprise that the “radio business” continues to kill itself.