Audacy slashes debt by 80% in pre-written bankruptcy plan

PHILADELPHIA – Audacy, Inc. (OTC: AUDA), a multi-platform audio content and entertainment company, today announced that it has commenced a pre-packaged Chapter 11 reorganization. The company plans to reduce total debt by 80% from about $1.9 billion to about $350 million by reaching an agreement with most creditors.

The restructuring support agreement involves the equitization of approximately $1.6 billion of financing debt. Operations are expected to continue as normal during the restructuring and no impact on trading and other unsecured creditors is expected.

Audacy Chairman, President and Chief Executive Officer David J. Field cited macroeconomic challenges and a sharp decline in broadcast advertising spending as factors that require a balance sheet restructuring. Despite these challenges, Field remains confident in the company’s long-term growth prospects, highlighting Audacy’s transformation into a scalable, multi-platform business focused on premium audio content.

Prepackaged Chapter 11 proceedings were launched on Sunday, with a proposed reorganization plan filed in the U.S. Bankruptcy Court for the Southern District of Texas. The plan is subject to court approval and has received commitments of support from creditors. A court hearing to consider approval of the plan is expected in February, and Audacy is expected to emerge from bankruptcy after receiving regulatory approval from the Federal Communications Commission.

Audacy operates a radio group, a large podcast studio, a direct-to-consumer streaming platform and various audio networks. It is also a large-scale event organizer and digital marketing solutions provider.

The company secured $57 million in debtor-in-possession financing commitments to support operations during the Chapter 11 process. This includes a new term loan and increased accounts receivable financing facilities. The company’s current revenue.

Audacy 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 reorganization.

The reorganization plan is based on Audacy, Inc.’s press release statement. For more details, including court documents, Audacy has directed interested parties to a dedicated website maintained by its claims and notification agent, Epiq Corporate Restructuring, LLC.

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