Audacy Requests Extension for Debtor-in-Possession Loans
The United States Bankruptcy Court for the Southern District of Texas Houston Division approved Audacy’s prepackaged plan for reorganization under Chapter 11 on February 20 of this year. But the company is
awaiting the FCC’s blessing on the plan to complete reorganization and its Debtor-in-Possession credit facility in the aggregate principal amount of $32 million matures on August 19, 2024. (This DIP Facility allows Audacy to function during the reorganization period.) Audacy is asking the Court to extend the maturation date to September 30, 2024. Audacy stated in its second quarter 2024 financial report that it expects to receive FCC approval in the third quarter of this year.
township of Lower Merion with regard to its former headquarters in Bala Cynwyd, Pennsylvania. The original amount to be paid by Audacy was $1.4 million however that figure was later deemed incorrect and now the company agrees to pay the township $2 million. Audacy is still awaiting final approval from the FCC to be able to operate its radio stations as the new Audacy.
the FCC’s requirement to do a foreign ownership review and Audacy’s request that the FCC grant a limited waiver of that review in order to more speedily exit Chapter 11. This request is under heavy scrutiny due to the political aspects of the case. Carr recently told the Post that the FCC should not allow a “Soros shortcut” – a term used by the Media Research Center in its Petition to Deny filed with the Commission – but must follow FCC procedure. Audacy argued in its opposition to the Petition to Deny that there is nothing unique about this request, saying that the FCC “granting a limited waiver deferring its foreign ownership review to facilitate a licensee’s prompt emergence from bankruptcy is consistent with the Communications Act.” Audacy adds that the notion that the limited waiver is new “completely ignores longstanding precedent establishing the Commission-approved special warrant process used in a number of prior transactions to allow licensees to emerge from bankruptcy promptly, while affording the Commission sufficient opportunity to review foreign ownership issues post-emergence.” 
settled beforehand. Audacy expects to emerge from the Chapter 11 process after approval from the FCC. Audacy chairman, president and CEO David J. Field says, “Today’s announcement marks a powerful step forward for Audacy, positioning the company for an exciting future. As expected, we have achieved a speedy confirmation of our prepackaged Plan, which will enable Audacy to pursue our strategic goals and opportunities in the dynamic audio business. We aim to drive accelerated growth and financial performance, capitalizing on our scaled, leadership position, our uniquely differentiated premium audio content and the robust capital structure that we will have upon emergence. I also want to express my gratitude to our team, who continue their outstanding work to serve our listeners and customers with excellence and fulfill our commitments without missing a beat.” The company notes that under the Plan, trade and other unsecured creditors will not be impaired.
proceedings in the United States Bankruptcy Court for the Southern District of Texas and has filed a proposed Plan of Reorganization that incorporates the terms of the RSA and is subject to approval by the Court. Under the terms of the RSA, a supermajority of debtholders committed to vote in favor of the Plan, which, when approved, will reduce Audacy’s funded debt from approximately $1.9 billion to approximately $350 million. Audacy’s debtholders will receive equity in reorganized Audacy. Audacy expects that the Court will hold a hearing to consider the approval of the Plan in February and to emerge from bankruptcy once regulatory approval is obtained from the Federal Communications Commission. Audacy has filed with the Court a series of customary “First Day Motions” to obtain Court authority for the Company to continue operating its business in the ordinary course without disruption to its advertisers, vendors, partners or employees. Audacy expects to operate normally during this restructuring process under its current leadership team. 
