Radio and podcast company Audacy revealed that it filed for chapter 11 bankruptcy Sunday, citing “macroeconomic challenges” as the reason for its restructuring.
Audacy is the home to hundreds of broadcast, sports and podcast shows and is one of the largest radio broadcasters in the country. In an announcement Sunday, Audacy’s President and CEO David Field revealed that it filed for bankruptcy and that it entered into a restructuring support agreement with a supermajority of its debtholders.
“Over the past few years, we have strategically transformed Audacy into a leading, scaled multi-platform audio content and entertainment company through our acquisition of CBS Radio and by building leading complementary positions in podcasting, audio networks, live events, digital marketing solutions and our direct-to-consumer streaming platform,” Field said in a statement.
He said that there was a “perfect storm” of challenges facing the company over the past four years. He said that the restructuring should not have “any operational impact” on the company, noting that “trade and other unsecured creditors will not be impaired.”
“While our transformation has enhanced our competitive position, the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending,” he said.
He added that those factors “severely impacted our financial condition and necessitated our balance sheet restructuring.”
The company’s announcement said it began its prepackaged Chapter 11 proceedings in the Southern District of Texas on Sunday. Audacy filed a proposed plan of reorganization, which, if approved by the court, “will reduce Audacy’s funded debt from approximately $1.9 billion to approximately $350 million.”
Updated at 8:32 pm.