Audacy, one of the nation’s leading radio companies, has filed for bankruptcy in a bid to reduce its debt and continue its digital transformation. The Philadelphia-based company, which operates several FM and AM stations in Boston, initiated Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Texas.
As part of its restructuring efforts, Audacy has reached a prepackaged agreement that would allow it to reduce its debt from a staggering $1.9 billion to a more manageable $350 million. The company expects a court hearing in February to seek approval of the restructuring plan, which it believes will enable it to capitalize on its position as a leading multi-platform audio content and entertainment provider.
Despite the bankruptcy filing, Audacy emphasized that the restructuring would not have any operational impact. The company reassured its trade and other unsecured creditors that they would not be affected by the bankruptcy proceedings. This news comes after Audacy was delisted from the New York Stock Exchange in November, highlighting the challenges the company has faced in recent months.
Among Audacy’s portfolio of Boston-area stations are popular FM channels such as WEEI 93.7 FM, Big 103, Magic 106.7, Mix 104.1, and Channel Q. These stations have played a significant role in Audacy’s success, and the company sees the restructuring as an opportunity to further enhance its digital capabilities and expand its reach.
By reducing its debt burden, Audacy aims to position itself for long-term growth and sustainability in an increasingly competitive media landscape. The company recognizes the importance of digital transformation in reaching its audience and looks to capitalize on its existing assets and expertise in audio content and entertainment.
While the bankruptcy filing marks a challenging time for Audacy, the company remains optimistic about its future prospects. With the expected court hearing in February and the potential approval of the restructuring plan, Audacy hopes to emerge from bankruptcy stronger and better equipped to navigate the evolving media industry.