According to a report in the Wall Street Journal and picked up by various financial publications including The Business Journals, Audacy will file for chapter 11 bankruptcy protection after several months of discussions with its lenders. In what is termed a pre-packaged bankruptcy deal because it comes with
the blessing of the lenders, the company will be owned by those same lenders. Audacy’s debt is approximately $2 billion. It began talks with lenders in October after the company sought and received amendments to its credit facilities because it is unable to make interest payments due largely to the industry-wide downturn in advertising revenue. The 2017 acquisition of the CBS Radio assets is cited among industry watchers as the move that pushed Audacy into its currently precarious situation.
