Brendan McDiarmid/Reuters
The corporate logo of Audacy, Inc. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) on May 16, 2023 in New York City, USA.
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Audacy, a distressed multi-platform audio content company, announced Sunday that it has commenced Chapter 11 bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of Texas.
Internet radio conglomerate, one of the largest radio companies in the country was heavily in debt and faced slumping advertising revenue. Audacy announced that it has entered into a restructuring agreement to reduce its debt from approximately $1.9 billion to $350 million.
“While our transformation has strengthened our competitiveness, the perfect storm of persistent macroeconomic challenges facing the traditional advertising market over the past four years has resulted in billions of dollars in cumulative radio advertising spending. “This has led to significant reductions in the number of employees,” said Chairman David Field. Audacy President and CEO said in a statement:
“We believe that our large scale leadership position, uniquely differentiated premium audio content, and strong capital structure position Audacy to continue to innovate and grow in the dynamic audio business. ” he said.
Audacy was delisted from the New York Stock Exchange in November 2023. The company said it does not expect the restructuring to impact advertisers, partners or employees.
Field said in the company’s third-quarter 2023 earnings call that Audacy is in “constructive discussions” with its lenders to stay afloat. In its SEC filing in May, Audacy also noted that “current macroeconomic conditions,” including high inflation and increased competition for advertisers, were weighing on expected earnings.
Audacy said in a May SEC filing that its revenue projections for the next year are not sufficient to meet its obligations.
The company had an interest payment grace period until October 2023. At the time, Audacy said it would use the extension to strategize with lenders to operate the business.
Founded in 1968, Philadelphia-based Audacy operates in hundreds of U.S. radio markets.
