The proprietor of WEEI and different Boston radio stations has filed for chapter, as the corporate’s chief blamed a “perfect storm” of economic challenges sparking a drop of a number of billion {dollars} in radio advert spending.
Audacy, Inc., has introduced that it has filed for Chapter 11 proceedings in U.S. Bankruptcy Court for the Southern District of Texas. Meanwhile, the corporate stated it has entered right into a restructuring settlement with a supermajority of its debtholders.
Audacy is the father or mother firm of WEEI, which has fallen effectively behind 98.5 The Sports Hub in scores during the last a number of years. Other Boston radio stations beneath the Audacy umbrella embody Mix 104.1 and Magic 106.7.
“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,” David J. Field, chairman, president and CEO of Audacy, stated in an announcement.
“These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring,” Field added. “With our scaled leadership position, our uniquely differentiated premium audio content and a robust capital structure, we believe Audacy will emerge well positioned to continue its innovation and growth in the dynamic audio business.”
Audacy doesn’t anticipate any operational affect from the restructuring, the corporate stated in a press launch.
Under the phrases of the restructuring settlement, the plan will scale back Audacy’s funded debt from about $1.9 billion to about $350 million.
The firm expects that the U.S. Bankruptcy Court for the Southern District of Texas will maintain a listening to to think about the approval of the plan subsequent month. Audacy anticipates that it’s going to emerge from chapter as soon as regulatory approval is obtained from the Federal Communications Commission.
“The restructuring will enable Audacy to continue its digital transformation and capitalize on its position as a scaled, leading multi-platform audio content and entertainment company differentiated by its exclusive, premium audio content,” the press launch acknowledged.
“Audacy operates one of the country’s two scaled radio broadcasting groups, as well as one of the country’s largest podcast studios, the Audacy direct-to-consumer streaming platform and multiple audio networks,” the corporate added. “Audacy is a major event producer and a digital marketing solutions provider and is the unrivaled leader in local news and sports radio.”
Audacy’s inventory value has been cratering lately. The inventory value closed at 11 cents on Monday after AUDA had closed at 20 cents on Friday.
Audacy just lately put up a job posting for a Red Sox play-by-play and analyst announcer on WEEI.
Source: www.bostonherald.com”