BOSTON — Radio giant Audacy, which owns several popular stations in Boston, has filed for bankruptcy and is entering a restructuring agreement to reduce its $1.9 billion in debt, the company announced Sunday.
The audio content company has commenced prepackaged Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas and now will undertake a deleveraging transaction to equitize approximately $1.6 billion of funded debt, a reduction of 80%, according to a published statement.
“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. These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring,” David J. Field, Chairman, President and CEO of Audacy, said in a statement.
Field said that the restructuring will enable Audacy to continue its “digital transformation and capitalize on its position as a scaled, leading multi-platform audio content and entertainment company differentiated by its exclusive, premium audio content.”
Audacy operates one of the country’s two scaled radio broadcasting groups, as well as one of the country’s largest podcast studios.
Locally owned Audacy stations in the Boston market include:
- Big 103
- Channel Q
- WEEI 850 AM
- WEEI 93.7 FM
- Magic 106.7
- WEEI 1440 AM
- Mix 104.1
It wasn’t immediately clear if the filing would have an impact on the operation of those stations.
Audacy stock will continue to trade over-the-counter under the symbol “AUDA” through the pendency of the Chapter 11 process, according to Field. The shares are expected to be canceled and receive no distribution as part of Audacy’s restructuring.
For more on the filing, click here.
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