Audacy Initiates Chapter 11 Bankruptcy Proceedings Amid Financial Struggles

In a significant move to address financial challenges, Audacy, a prominent multi-platform audio content company, has officially filed for prepackaged Chapter 11 bankruptcy proceedings. The announcement came on Sunday, marking a critical step for the struggling internet radio conglomerate, one of the largest radio companies in the United States.

Audacy cited substantial debt and a slowdown in advertising revenue as the primary reasons behind the decision to undergo restructuring. The company aims to reduce its debt from approximately $1.9 billion to $350 million through the bankruptcy proceedings.

David Field, Audacy’s Chairman, President, and CEO, acknowledged the impact of sustained macroeconomic challenges on the traditional advertising market over the past four years. He emphasized that despite facing adversity, Audacy’s transformation, competitive position, premium audio content, and robust capital structure will position the company for continued innovation and growth in the dynamic audio business.

The radio conglomerate, which was delisted from the New York Stock Exchange in November 2023, assured stakeholders that the restructuring would not adversely affect advertisers, partners, or employees.

Audacy had hinted at financial difficulties in its 2023 third-quarter earnings release when David Field mentioned “constructive conversations” with lenders to address the company’s financial situation. A May SEC filing highlighted the impact of “current macroeconomic conditions,” such as high inflation and increased competition for advertisers, on their forecasted revenue.

In the same May filing, Audacy expressed concerns that its projected revenue over the next year might not be sufficient to meet its debt obligations. The company had entered a grace period for interest payments due in October 2023, during which it aimed to collaborate with lenders to strategize a plan for sustaining its business operations.

Founded in 1968 and headquartered in Philadelphia, Audacy operates in numerous radio markets across the United States. The Chapter 11 bankruptcy filing is a significant development in the company’s efforts to navigate financial challenges and secure a sustainable future.