Variety reported that major broadcasting company Audacity announced on Sunday its decision to file for Chapter 11 bankruptcy protection.
The move is aimed at significantly reducing the company's financial burden and reducing its debt by about 80%, according to the company. variety. Audacy, which ranks as the second largest radio broadcaster in the United States after iHeart Media, operates 235 radio stations in 48 markets. Notable stations include her KROQ and KNX in Los Angeles, her sports talk flagship station WFAN in New York, his V-103 in Atlanta, News Radio 780 WBBM in Chicago, and more.
The strategic realignment will reduce the company's financing debt from approximately $1.9 billion to $350 million, the media noted. The Philadelphia-based company has filed for prepackaged bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. Under this arrangement, the debtor receives shares in the reorganized company. A court hearing to approve the bankruptcy plan is scheduled for February, and Audacy hopes to complete the process after approval from FCC regulators, the newspaper said.
America's largest radio company Audacy files for bankruptcy protection https://t.co/p9oqL0pyRT
— CNBC (@CNBC) January 7, 2024
“Although our transformation has strengthened our competitiveness, the perfect storm of persistent macroeconomic challenges faced by the traditional advertising market over the past four years has resulted in a decline in cumulative radio advertising spending,” said David Field, chairman of Audacy. “This has led to significant savings in the billions of dollars.” According to Variety, the company's president and CEO said in a statement: (Related: Large Chinese asset management company files for bankruptcy amid real estate crisis)
“These market factors are having a significant impact on our financial position and require us to restructure our balance sheet. Our size and leadership position, uniquely differentiated premium audio content, And with our strong capital structure, we believe Audacy is well-positioned to continue to innovate and grow in the dynamic audio business,” Field added.
