Well-known radio and podcast company Audacy, Inc. has officially entered into Chapter 11 bankruptcy protection.
CNBC reports that earlier this week Audacy, Inc., the second-largest radio broadcaster in the United States, announced it made the move to restructure its finances.
This step reportedly aims to reduce the company’s massive debt load, which currently stands at $1.9 billion. Audacy plans to reduce this amount to a more manageable figure of around $350 million, which would be an 80 percent decrease.
Headquartered in Philadelphia, Audacy controls a network of hundreds of radio stations nationwide. This includes flagship stations like WFAN Sports Radio, 1010 WINS in New York, and San Francisco’s KCBS. Despite an impressive radio station portfolio, the company has been facing major financial pressure and struggling to keep up in the modern media landscape.
Audacy CEO David Field commented: “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.”
Field added: “Over the past few years, we have strategically transformed Audacy into a leading, scaled multi-platform audio content and entertainment company,” but commented on the number of issues the company faces, stating: “These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring.”
An SEC filing in May stated that Audacy’s revenue forecast over the next year wouldn’t be enough to fulfill its debt obligations. The company received a grace period for interest payments due in October 2023 and said that it would use that time to strategize a plan with lenders for its business operations.
But Field seems confident about the future of the company, stating: “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.”