Radio and podcast huge Audacy Inc. applied for chapter 11 insolvency defense Sunday amidst a cratering marketing market.
Philadelphia-based Audacy
AUDA,
revealed a “extensive restructuring” Sunday, looking for to minimize about 80% of its $1.9 billion of financial obligation, to approximately $350 million.
“The best storm of continual macroeconomic obstacles over the previous 4 years dealing with the standard marketing market has actually resulted in a sharp decrease of numerous billion dollars in cumulative radio advertisement costs,” Audacy Chief Executive David J. Field stated in a declaration. “These market aspects have actually seriously affected our monetary condition and demanded our balance-sheet restructuring.”
The business stated a supermajority of financial institutions had actually authorized the reorganization strategy, permitting Audacy to submit a packaged personal bankruptcy procedure, focused on speeding the procedure.
Audacy got the majority of its financial obligation after its merger with CBS Radio in 2017. It owns numerous radio stations throughout the U.S., consisting of WFAN and WINS in New York, KROQ in Los Angeles and KCBS in San Francisco.
The business stated it anticipates its personal bankruptcy strategy to be thought about in court in February, and prepares to emerge from personal bankruptcy after getting approval by the Federal Communications Commission. Audacy stated it anticipates to run generally through the procedure.
Audacy shares were delisted from the New York Stock Exchange in November, and are now traded nonprescription. The stock has actually sunk 97% over the previous 12 months, closing Friday at 19 cents, for a market cap of about $946 million.