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Radio giant Audacy has filed for bankruptcy amid a collapse in advertising revenue.
The Philadelphia-based company, which oversees major podcast 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 the majority of its creditors.
A screen displays the Audacy, Inc. corporate logo on the floor of the New York Stock Exchange (NYSE) in New York City, United States, May 16, 2023. (Portal/Brendan McDermid / Portal Photos)
The agreement calls for the company to eliminate about 80% of its nearly $2 billion in 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 difficult environment in recent years as cumulative radio advertising spending has fallen dramatically by billions of dollars.
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“With our scaled leadership position, uniquely differentiated premium audio content and robust capital structure, we believe Audacy will be well positioned to continue its innovation and growth in the dynamic audio business,” said Field.
According to 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.