Radio big Audacy information for chapter 11 chapter, as advert gross sales plunge

“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,” Audacy Chief Executive David J. Field mentioned in an announcement. “These market factors have severely impacted our financial condition and necessitated our balance-sheet restructuring.”

The firm mentioned a supermajority of collectors had authorised the reorganization plan, permitting Audacy to file a prepackaged chapter course of, geared toward rushing the method.

Audacy picked up most of its debt after its merger with CBS Radio in 2017. It owns tons of of radio stations throughout the U.S., together with WFAN and WINS in New York, KROQ in Los Angeles and KCBS in San Francisco.

The firm mentioned it expects its chapter plan to be thought-about in court docket in February, and plans to emerge from chapter after acquiring approval by the Federal Communications Commission. Audacy mentioned it expects to function usually by means of the method.

Audacy shares had been delisted from the New York Stock Exchange in November, and at the moment are traded over-the-counter. The inventory has sunk 97% over the previous 12 months, closing Friday at 19 cents, for a market cap of about $946 million.