The beforehand reported Audacy chapter announcement has been made official by the radio firm. Picture Credit score: Audacy
Following numerous setbacks, together with layoffs and an NYSE delisting, Audacy has filed for Chapter 11 chapter.
The Philadelphia-based radio conglomerate disclosed the information in a proper launch, with studies having steered earlier in January that chapter was imminent for the enterprise.
As highlighted, 2022 had introduced with it personnel reductions and disappointing financials for Audacy, earlier than 2023 delivered (amongst different issues) a delisting from the NYSE attributable to “an abnormally low promoting worth.”
Now, the troubled entity says it’s finalized a reorganization settlement “with a supermajority of its debtholders.” As a part of the far-reaching restructuring, Audacy intends to “undertake a deleveraging transaction to equitize roughly $1.6 billion of funded debt,” finally bringing a couple of lower of 80 % to someplace within the ballpark of $350 million, in line with the discharge.
Debtholders will then “obtain fairness in” the revamped Audacy, per the related firm, which expects a Texas chapter courtroom to think about the restructuring plan throughout February. Assuming this courtroom indicators off, the enterprise is anticipating formally rising from chapter after scoring FCC approval someday thereafter.
In the intervening time, sure “present lenders” have put up $57 million in debtor-in-possession financing, Audacy relayed, consisting particularly of a $32 million new time period mortgage and a $25 million bump to an “present accounts receivables financing facility.”
As this capital suggests, the corporate is poised to maintain on working whereas the chapter proceedings progress, referring notably to functioning “usually throughout this restructuring course of underneath its present management staff,” the discharge spells out.
Larger image, CEO David Discipline is touting the event as “the daybreak of a brand new period” for Audacy, per an internally circulated memo obtained by the radio trades.
With an all-hands digital assembly reportedly teed up for at the moment, Discipline in the identical memo assured staff members that there’ll “be no disruption to your wages and advantages.” Furthermore, “a strong stability sheet…will facilitate our future progress and efficiency,” the longtime Audacy head and former Goldman funding banker communicated.
Wrapping the comparatively concise message, Discipline known as on staffers to take care of their “give attention to serving our clients as we transition and stay up for capitalizing on our alternatives and to higher instances forward.”
In November, the self-described “multiplatform audio powerhouse” reported $299.17 million in internet revenues for Q3 2023, down about six % 12 months over 12 months (YoY). Moreover, Audacy recognized a third-quarter internet lack of $234.33 million (up roughly 66 % YoY), fueled partially by heightened working bills of $580.33 million or so.