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Broadcaster Audacy filed for bankruptcy today, a move blamed on plummeting advertising for radio.
The firm owns KROQ and KCBS in Los Angeles and WFAN and WINS in New York, but the move is not expected to have any immediate impact on day-to-day operations. Audacy has already negotiated a bankruptcy plan with its lenders, according to the Wall Street Journal. The lenders are expected to take over the company during its restructuring.
Audacy is the second-largest radio broadcaster in the U.S. after iHeartMedia. It has 235 owned radio stations across 48 markets
The Philadelphia-based broadcaster filed a chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. Audacy is expected to reduce its nearly $2 billion debt load by roughly $1.6 billion, leaving $350 million of debt outstanding following the reorganization, according to a company statement.
A group of lenders will provide roughly $57 million in debtor-in-possession financing for the proceedings.
Audacy operates hundreds of music, news and sports radio stations, and provides streaming services through its mobile app. Founded in 1968 as Entercom Communications, the company merged with CBS Radio in 2017. It operated as Radio.com following the CBS merger before rebranding as Audacy in 2021.
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