Industry News

Audacy Won’t Challenge BMI Merger in Exchange for $25.4 Million in Stock

A bankruptcy court judge is agreeing to Audacy’s settlement with BMI in which Audacy agrees not to challenge BMI’s pending merger in exchange for at least $25.4 million in BMI stock. This comes as Audacy makes its way through the Chapter 11 proceedings and addresses both the audit dispute and fee dispute Audacy has with BMI. Regarding the audit dispute over how many BMI shares Audacy owns,im Audacy agrees to pay BMI $550,000 in settlement of those claims. Audacy and BMI agree to resolve the fee dispute with 60 days of BMI’s merger. Based on the results of the 2017-2019 Audit, BMI asserted that Audacy owed approximately $1.68 million in fees to BMI. Audacy disputed BMI’s claim and, since 2020, has been negotiating with BMI to settle that matter and any potential claims relating to Audacy’s 2020 revenue subject to license fees. BMI has also asserted that Audacy owes approximately $9.26 million in unpaid license fees and accrued late fees, which Audacy disputes. Audacy says in its filing that this “Settlement is in the best interest of all stakeholders (including Debtors’ secured creditors, the only impaired parties) because it will, subject to the closing of the merger, bring in at least $25 million of funds to the Debtors’ estates (potentially within days of this settlement being approved), with the possibility for up to an additional $13.6 million in the following months.”