Radio and podcast company Audacy declares bankruptcy

Radio and podcast company Audacy revealed that it filed for Chapter 11 bankruptcy on Sunday, citing “macroeconomic challenges” as the reason for its restructuring.

Audacy is home to hundreds of radio shows, sports, and podcasts and is one of the largest radio broadcasters in the country. In Sunday's announcementDavid Field, president and CEO of Audacy, revealed that it has filed for bankruptcy and has entered into a restructuring support agreement with the vast majority of its debtors.

“Over the past few years, we have strategically transformed Audacy into a leading, multi-platform audio content and entertainment company through our acquisition of CBS Radio and by building complementary leadership positions in podcasting, audio networks, live events, and digital marketing solutions,” Field said in a statement. Our direct-to-consumer broadcast.”

He said there was a “perfect storm” of challenges facing the company over the past four years. He said the restructuring should not have “any operational impact” on the company, noting that “trading and other unsecured creditors will not be affected.”

“While our transformation has strengthened our competitive position, the perfect storm of persistent macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp multi-billion-dollar decline in cumulative radio advertising spending,” he said.

He added that these factors “severely affected our financial position and necessitated the restructuring of our balance sheet.”

The company's announcement said it had commenced pre-arranged Chapter 11 proceedings in the Southern District of Texas on Sunday. Audacy has filed a proposed plan of reorganization, which, if approved by the court, “would reduce Audacy's funded debt from approximately $1.9 billion to approximately $350 million.”

Updated at 8:32 p.m.