Audacy is preparing to file for bankruptcy in the coming weeks as declining advertising revenue has resulted in the Philadelphia-based radio broadcaster being unable to service its nearly $2 billion debt load, writes Alexander Gladstone for The Wall Street Journal.
The senior lenders with whom Audacy has reached an agreement in its bankruptcy plan will provide financing for the proceedings and are expected to own the company following the restructuring.
Audacy’s revenue has decreased while its net losses have widened due to lower advertising spending in the radio sector.
Last year, the company raised doubt over its ability to continue as a growing concern. Its current revenue forecasts for 2024 indicate it will have difficulty satisfying its debt obligations.
In October, Audacy missed interest payments on its senior loans and obtained consent from its lenders to provide a grace period as they worked on restructuring negotiations.
Senior lenders are working with the law firm Gibson Dunn & Crutcher, while a group of second lien bondholders has engaged with law firm, Akin Gump Strauss Hauer & Feld.
Audacy has been working with restructuring adviser PJT Partners and lawyers from Latham & Watkins.
Read more about Audacy’s bankruptcy plans at The Wall Street Journal.
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