What has long been rumored and hypothesized is reportedly ready to come to fruition: Audacy is preparing to file for bankruptcy.
According to a report from The Wall Street Journal, Audacy is likely to officially file for bankruptcy in the coming weeks after it has become unable to handle its nearly $2 billion debt load.
The report claims the company has agreed to a “prepackaged bankruptcy plan” with its lenders, which will help finance the bankruptcy proceedings.
Audacy has repeatedly made attempts to strengthen itself in previous months. The company missed an interest payment on its loans in October. In December, it signed an amendment to its credit agreement hoping to give another 68 days to reach an agreement to avoid defaulting on nearly $19 million in loans that were set to come due.
2024 was set to be a difficult year for Audacy’s debt, with more than $925 million scheduled to mature with lenders. That debt load, coupled with a decline in advertising revenue, made filing for Chapter 11 bankruptcy the company’s best option. According to The Wall Street Journal report, Audacy senior leaders are expected to assume ownership of the company once it emerges from the proceedings.
The company owns 235 radio stations in 48 markets.
