After working diligently to avoid this course of action, Audacy has begun a prepackaged Chapter 11 bankruptcy protection proceeding, writes Jeff Blumenthal for the Philadelphia Business Journal. 

The bankruptcy filing came after Audacy reached a restructuring deal with a “supermajority” of its debtholders, which will reduce most of its $1.9 billion in debt. This would allow the credits to take control of the company. 

The Philadelphia-based audio content provider company owns more than 200 radio stations across the country, including local radio stations, such as B101, Top 40 station 96.5 TDY, SportsRadio 94 WIP, KYW Newsradio, and more.

Chairman and CEO David Field said Audacy has executed a strategy to expand beyond radio and diversify into podcasting, audio networks, live events, digital marketing, and direct-to-consumer streaming.

“While our transformation has enhanced our competitive position, the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending,” Field said in a statement. 

He added that he believes Audacy will emerge well-positioned to continue its innovation and growth in the audio business, thanks to its scaled leadership position. 

Read more about the lead-up and aftermath of Audacy’s Chapter 11 bankruptcy filing at the Philadelphia Business Journal. 

_____