Radio giant Audacy, formerly known as Entercom Communications, has filed for bankruptcy protection in the wake of a decline in advertising revenue. The Philadelphia-based company, which oversees major podcast and radio operations and recently acquired CBS Radio, filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas.
Audacy has already reached a restructuring agreement with a majority of its debtholders, a move aimed at alleviating the burden of its nearly $2 billion debt. As part of the plan, the company intends to slash approximately 80% of its debt, signaling its commitment to long-term growth prospects. Audacy assures stakeholders that the restructuring process will have no impact on its operations, trade, or other unsecured creditors.
David J. Field, Audacy’s Chairman, President, and CEO, acknowledges the challenges faced by the company amidst a substantial decrease in radio advertising spending. However, he remains optimistic about the future, asserting that Audacy will emerge from the restructuring process well-positioned for continued innovation and growth in the audio business.
Under the terms of the agreement, debtholders will receive equity in the restructured company, potentially providing them with a stake in Audacy’s future success. The plan’s approval will be subject to a hearing by the Court in February, where key stakeholders will have an opportunity to voice their views and concerns.
Audacy’s move to file for bankruptcy protection is a strategic maneuver aimed at addressing the financial impacts of the advertising slump that the radio industry has experienced. While the company faces short-term challenges, it is taking proactive steps to ensure its long-term viability and adapt to the changing landscape of the audio business.
As Audacy continues to navigate through these difficult times, it remains committed to providing quality content and maintaining its position as a leading player in the radio and podcast industry. The company’s restructuring efforts, along with its focus on innovation and growth, are crucial in preserving its market position while exploring new opportunities in the evolving digital media landscape.
