Audacy has agreed to a $1.4 million settlement with a Pennsylvania township, resolving a longstanding dispute over claims of unpaid local and business taxes. The news was revealed in a June 7 court filing as part of Audacy’s ongoing bankruptcy proceedings.
Lower Merion Township was identified as seeking approximately $11.7 million for taxes dating back to when the company, then known as Entercom, was based in Bala Cynwyd. That headquarters later made the approximately six-mile-move to downtown Philadelphia in 2019.
The dispute centered on tax assessments from 2012 to 2016, with Lower Merion initially claiming unpaid taxes and interest for Entercom subsidiaries, which allegedly did not operate out of the Bala Cynwyd headquarters. The settlement stipulates that neither party admits any liability and all related litigations will be dismissed.
Legal representation for Audacy was provided by Porter Hedges in Houston and Latham & Watkins in Los Angeles, while Lower Merion’s legal interests are handled by Kathleen Thomas of Perkasie and Hoffman & Saweris from Houston.
As for the rest of the ongoing Chapter 11, a status conference is scheduled for June 20 in Houston. The reorganization received court approval in February but faces delays at the FCC due to concerns raised by Republican-backed objections regarding Soros Fund Management’s acquisition of $400 million in Audacy debt.
The broadcaster saw a modest Q1 increase in net revenues to $261.8 million from $259.6 million the previous year. While digital revenues climbed by 10%, radio revenues dipped by 2%.
Operating expenses were reduced to $262.2 million, down from $271.8 million, leading to a significantly reduced operating loss of $0.4 million, compared to a $12.2 million loss in Q1 2023. The net loss for the quarter was markedly lower at $1.85 million, down from $35.9 million in the prior year.
