With a court order from Judge Christopher Lopez, Audacy has officially completed its restructuring process under Chapter 11. The US Bankruptcy Court for the Southern District of Texas issued a final decree closing the broadcaster’s sole remaining Chapter 11 case on January 26.
The case, involving Audacy Texas, LLC, was kept open to address final administrative issues. Audacy filed a motion to close in late December.
The decree outlines the remaining administrative responsibilities for Audacy, including filing a final post-confirmation quarterly report and settling outstanding quarterly fees as required by law. Epiq Corporate Restructuring, LLC, the claims, noticing, and solicitation agent for the case, is also directed to submit electronic copies of all proofs of claim to the court clerk and destroy physical records after proper notice.
The court emphasized that the final decree does not alter any rights or distributions provided under the reorganization plan. It also ensures that any party retains the right to seek a reopening of the case if necessary under US Bankruptcy Code and preserves the court’s jurisdiction to address any matters related to the plan’s enforcement or interpretation.
Audacy filed for bankruptcy in January 2024, with its reorganization plan approved in February and substantially completed by September. A final decree was issued in October, excluding Audacy Texas, LLC.
Whether that restructuring faces challenges from newly appointed FCC Chairman Brendan Carr remains to be seen. Chairman Carr expressed the possibility of revisiting the 3-2 FCC vote that temporarily waived ownership limits, allowing George Soros-backed Laurel Tree Opportunities Corporation to exceed the 25% ownership threshold by acquiring over 40% of Audacy’s senior debt.
Earlier this month, Audacy withdrew its FCC petition – first submitted in October – regarding foreign ownership limits, citing recent equity changes that make the request unnecessary. Stock transfers among shareholders have reduced foreign voting interest to 24.5%, falling below the FCC’s 25% threshold.
