Audacy Files Emergency Motion Amid FCC Bankruptcy Delays

RADIO ONLINE | Wednesday, August 14, 2024

Audacy

Seven months after initially filing for Chapter 11 bankruptcy, Audacy finds itself compelled to file an emergency motion in the U.S. Bankruptcy Court for the Southern District of Texas, as the Federal Communications Commission (FCC) contunes to delay approval of the company's restructuring plan.

The motion, submitted on August 12, seeks to extend a critical forbearance period -- a temporary pause on certain financial obligations -- which is currently set to expire on August 19. Audacy is requesting that the court extend this period until September 30 under the Debtor-in-Possession Forbearance Agreement.

A hearing is scheduled for August 15 to review the motion. The court is expected to grant the extension, given its past stance on similar matters. If approved, this extension would provide Audacy with the necessary time to continue its operations and work towards financial recovery.

However, if this motion is denied, Audacy would need to meet its financial obligations as originally outlined in the debtor-in-possession financing agreement. This would include resuming payments that had been paused, potentially increasing the risk of default on its financing.

Audacy's reorganization plan received court approval in February but is now awaiting final approval from the FCC. The delay has been attributed to scrutiny from Republican leaders in Washington, D.C., particularly concerning the involvement of Soros Fund Management, which acquired $400 million of Audacy's debt. This acquisition has made George Soros the company's largest shareholder, sparking concerns over potential foreign or political influence in U.S. media due to Soros' well-known liberal affiliations.

Despite these challenges, Audacy remains optimistic about securing the necessary FCC approvals, stating that its restructuring plan fully complies with the Communications Act.