Audacy Receives Court Approval of Reorganization Plan

RADIO ONLINE | Tuesday, February 20, 2024

Audacy

Audacy Inc. announced Tuesday that the U.S. Bankruptcy Court for the Southern District of Texas approved the company's plan of reorganization. With the plan approved, Audacy expects to emerge from the Chapter 11 process after it obtains approval from the FCC. Under the approved plan, Audacy will equitize $1.6 billion of funded debt, a reduction of 80% from $1.9 billion to $350 million. Trade and other unsecured creditors will not be impaired.

"Today's announcement marks a powerful step forward for Audacy, positioning the company for an exciting future," said Audacy Chairman, President and CEO David J. Field. "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."

He added, "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."

PJT Partners is acting as investment banker, FTI Consulting is acting as financial advisor and Latham & Watkins LLP is acting as legal counsel to Audacy. Greenhill & Co., LLC is acting as financial advisor and Gibson, Dunn & Crutcher LLP is acting as legal counsel to the DIP financing lenders and the ad hoc group of first lien debtholders. Evercore Group, LLC is acting as financial advisor and Akin Gump Strauss Hauer & Feld is acting as legal counsel to the ad hoc group of second lien debtholders.