AUDACY FILES FOR BANKRUPTCY

Audacy filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of Texas on Sunday (1/7) after a significant restructuring agreement with debtholders.

Per Radio Ink, the proposed Plan of Reorganization, which incorporates the restructuring-support agreement's terms, is subject to court approval. The majority of debtholders have committed to voting in its favor.

Meanwhile, Audacy has secured $57m in debtor-in-possession financing to support ongoing operations during the Chapter 11 process, including a new term loan and an increase in the accounts-receivables financing facility. Audacy common stock will continue to trade over the counter under the symbol AUDA, but those shares will likely be canceled without distribution as part of the restructuring.

Audacy has also filed First Day Motions to ensure business operations continue, and its current leadership team will remain intact.

Audacy President and CEO David Field said in a statement, "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. These market factors have severely impacted our financial condition and necessitated our balance-sheet restructuring. With our scaled leadership position, our uniquely differentiated premium audio content and a robust capital structure, we believe Audacy will emerge well positioned to continue its innovation and growth in the dynamic audio business.”