Radio giant Audacy has filed for bankruptcy protection amid a slump in advertising revenue.
The Philadelphia-based company, which oversees major podcast and radio operations and has acquired CBS Radio, said it has filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas after a restructuring agreement with a majority of its debtholders.
The agreement will see the company cut roughly 80% of its nearly $2 billion in debt. Audacy said it expects the restructuring will better position the company for long-term growth and doesn't expect it will impact operations, trade, or other unsecured creditors.
Audacy Chairman, President and CEO David J. Field said the company has faced a tough environment in recent years amid a sharp reduction of "several billion dollars in cumulative radio ad spending."
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"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," Field said.
Under the agreement announced Sunday, debtholders will receive equity in the company.
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The Court is expected to hold a hearing to consider the plan's approval in February.
