Audacy wants an end to any additional regulatory review of its post-bankruptcy restructuring. The broadcaster has formally withdrawn its October petition to the FCC seeking a declaratory ruling related to foreign ownership limits.
The filing comes as Audacy continues to operate under its recently completed restructuring plan, emerging from Chapter 11 bankruptcy as a privately held company with Soros Fund Management holding a majority stake. Audacy EVP and General Counsel Andrew Sutor says new changes in its equity structure now render the request unnecessary.
The filing originally sought FCC approval for a warrant exchange that would have resulted in non-US entities holding more than 25% of the company’s equity and voting interests. At the time, Audacy anticipated a 31.4% voting interest held by foreign entities. However, since the filing, stock transfers among existing shareholders have reduced foreign voting interest to 24.5%, placing Audacy below the FCC’s foreign ownership threshold, which Sutor says makes the matter moot.
Audacy now seeks to proceed with its warrant exchange without exceeding regulatory limits, yet it may not be a completely smooth road ahead.
Outside of the foreign ownership cap request, FCC Commissioner Brendan Carr, poised to become chairman under the incoming Trump administration, suggested he may revisit the FCC’s approval of Audacy’s post-bankruptcy restructuring due to concerns over ownership ties to George Soros-backed entities.
