Audacy Inc. Files for Chapter 11 Bankruptcy Protection
Philadelphia-based radio and podcast giant Audacy Inc. has filed for chapter 11 bankruptcy protection due to the significant decline in the advertising market. The company aims to reduce its massive $1.9 billion debt by approximately 80% to around $350 million through a comprehensive restructuring plan.
Market Challenges and Financial Impact
Audacy CEO, David J. Field, explained that the traditional advertising market has faced sustained macroeconomic challenges over the past four years. This situation has led to a substantial reduction of several billion dollars in cumulative radio ad spending. Consequently, these market factors have significantly impacted Audacy's financial condition and necessitated the need for a balance-sheet restructuring.
Debt Accumulation and Business Portfolio
After merging with CBS Radio in 2017, Audacy acquired most of its debt. The company currently owns a vast portfolio of radio stations across the United States. Some of its notable stations include WFAN and WINS in New York, KROQ in Los Angeles, and KCBS in San Francisco.
Bankruptcy Process and Future Outlook
Audacy expects its bankruptcy plan to undergo court consideration in February. Following approval by the Federal Communications Commission, the company plans to emerge from bankruptcy and continue its operations normally. Despite the financial challenges, Audacy maintains its commitment to providing quality content and services to its audience.
Share Performance and Market Cap
Throughout the previous year, Audacy's shares have dropped dramatically by 97%. The stock closed at 19 cents on Friday, resulting in a market capitalization of approximately $946 million.
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