Radio giant Audacy has filed for Chapter 11 bankruptcy due to plummeting advertising sales.
Radio and podcasting giant Audacy Inc. filed for Chapter 11 bankruptcy protection Sunday amid a slump in the advertising market.
Philadelphia-based Audacy AUDA;
On Sunday, the company announced a “comprehensive restructuring” aimed at reducing about 80% of its $1.9 billion in debt to about $350 million.
“Over the past four years, the ongoing macroeconomic challenges facing the traditional advertising market have resulted in a sharp decline in cumulative radio advertising spending by billions of dollars,” Audacy CEO David J. Field said in a statement. “These market factors have had a significant impact on our financial condition, necessitating a balance sheet restructuring.”
The company said the supermajority of its creditors approved the restructuring plan and allowed Audacy to file a pre-structured bankruptcy proceeding to speed up the process.
Audacy recovered most of its debt after merging with CBS Radio in 2017. Audacy owns hundreds of radio stations across the United States, including WFAN and WINS in New York, KROQ in Los Angeles, and KCBS in San Francisco.
The company said it expects its bankruptcy plan to be reviewed in court in February and plans to emerge from bankruptcy after receiving approval from the Federal Communications Commission (FCC). Ohdashi said he expects to operate normally through this process.
Audacy shares were delisted from the New York Stock Exchange in November and currently trade over-the-counter. The stock has fallen 97% over the past 12 months, closing Friday at 19 cents, giving it a market capitalization of about $946 million.
