Audacy cuts debt by 80% in prepackaged bankruptcy plan By Investing.com

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<p>PHILADELPHIA – Audacy, Inc. (OTC: AUDA), a multi-platform audio content and entertainment company, announced today it has commenced a prepackaged Chapter 11 restructuring process. The company aims to reduce its total debt from approximately $1.9 billion to about $350 million, an 80% decrease, through an agreement with a supermajority of its debtholders.</p>
<p>The restructuring support agreement involves equitizing around $1.6 billion of funded debt. Operations are expected to continue normally during the restructuring, with no anticipated impact on trade and other unsecured creditors.</p>
<p>David J. Field, Chairman, President, and CEO of Audacy, cited macroeconomic challenges and a significant decline in radio ad spending as factors necessitating the balance sheet restructuring. Despite these challenges, Field expressed confidence in the company’s long-term growth prospects, emphasizing Audacy’s transformation into a scaled, multi-platform enterprise with a focus on premium audio content.</p>
<p>The prepackaged Chapter 11 proceedings were initiated on Sunday, and a proposed Plan of Reorganization has been filed in the United States Bankruptcy Court for the Southern District of Texas. The plan, which is subject to court approval, has received commitments from debtholders to support it. A court hearing to consider the plan’s approval is expected in February, with Audacy set to emerge from bankruptcy upon receiving regulatory approval from the Federal Communications Commission.</p>
<p>Audacy operates a radio broadcasting group, a large podcast studio, a direct-to-consumer streaming platform, and various audio networks. It is also a major event producer and a provider of digital marketing solutions.</p>
<p>The company has obtained commitments for $57 million in debtor-in-possession financing to support operations during the Chapter 11 process. This includes a new term loan and an increase in the company’s existing accounts receivable financing facility.</p>
<p>Audacy’s common stock will continue to trade over-the-counter under the symbol “AUDA” throughout the Chapter 11 process, although the shares are expected to be canceled without distribution as part of the restructuring.</p>
<p>This restructuring initiative is based on a press release statement from Audacy, Inc. For more details, including court documents, Audacy has directed interested parties to a dedicated website managed by its claims and noticing agent, Epiq Corporate Restructuring, LLC.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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