Audacy Files For Chapter 11 Bankruptcy

(CTN News) – Several radio stations in Wichita have filed for Audacy Chapter 11 bankruptcy protection, according to the Wall Street Journal, RadioInsight, and Billboard.

It has been reported that Philadelphia-based Audacy, which was renamed from Entercom in 2021, has reached an agreement with its senior lenders for a prepackaged bankruptcy that will be financed by the lenders of the company. It is likely that those lenders will take ownership of the company once the restructuring has been completed.

As reported by Billboard, the company has been saddled with $2 billion in debt. A large part of this debt stems from its merger with CBS Radio in 2017, which resulted in the company going into debt.

In addition to expanding Audacy’s revenue, the deal also increased the company’s debt significantly, bringing it from $486 million at the end of 2016 to $1.86 billion by the end of 2017.

This restructuring is expected to lead to a reduction of the company’s debt by 80% as a result of the restructuring.

“While our transformation has enhanced our competitive position, the perfect storm of sustained macroeconomic challenges confronting the traditional advertising market during the past four years have resulted in a sharp decrease of several billion dollars over the past four years in cumulative radio ad spending,” Chairman, President and CEO David Field said in a press release.

As part of the restructuring process, the company expects to continue operating its business as usual without any disruption to wages and other benefits during the transition period.

Audacy is also the owner of KEYN 103.7 and KDGS 93.5 in Wichita, KFH 1240/97.5 in Salina, KNSS 1330/98.7 in Albuquerque, and KFBZ 105.3 in Wichita.

Over the course of its history, the company has owned and operated more than 200 radio stations in 48 markets across the country in locations such as Kansas City, New York, Los Angeles and Chicago.

After iHeartMedia, which completed a similar Chapter 11 reorganization in 2019 as part of its reorganization, Audacy Radio is the second largest radio broadcaster in the country.

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