Radio giant Audacy has filed for bankruptcy protection amid declining advertising revenues.
The Philadelphia-based company, which oversees major broadcast and radio operations and acquired CBS Radio, said it filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas following a restructuring agreement with a majority of its creditors.
Under the agreement, the company will reduce approximately 80% of its approximately $2 billion debt. Audacy said it expects the restructuring to better position the company for long-term growth and does not expect it to impact operations, trading or other unsecured creditors.
David J. Field, chairman, president and CEO of Audacy, said the company has faced a challenging environment in recent years amid a sharp decline of “several billion dollars in cumulative radio ad spending.”
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“With our broad leadership position, unique premium audio content, and strong capital structure, we believe Audacy will appear well positioned to continue its innovation and growth in the dynamic audio business,” Field said.
Under the agreement announced on Sunday, the debtors will receive shares in the company.
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The court is expected to hold a hearing to consider approval of the plan in February.
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