PHILADELPHIA (WRIC) — Audacy, one of the largest radio companies in the United States with several stations serving the City of Richmond, announced that it is filing for Chapter 11 bankruptcy.
The announcement was made on Sunday, Jan. 7, explaining that, as part of the bankruptcy filing, the company has entered into a prepackaged restructuring support agreement (RSA) with a supermajority of its debtholders.
According to a statement from Audacy, the RSA is expected to reduce the company’s funded debt by 80% — from approximately $1.9 billion to $350 million.
“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,” said David J. Field, Chairman, President and CEO of Audacy. “These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring. 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.”
Radio stations owned by Audacy in the Richmond area include:
- WBTJ — 106.5 The Beat
- WRVA — 96.1 News Radio
- WRNL — 105.1 The Fan
- WRVQ — 94.5 Q94
- WRXL — Alt 102.1
- WRXL-HD2 — Big 98.5
- WTVR — Mix 98.1
Through a partnership, WRIC provides news and weather updates to some of Audacy’s Richmond-area stations.
In Sunday’s statement, the company claims that it “expects to operate normally during this restructuring process under its current leadership team.”
The company expects the U.S. Bankruptcy Court to hold a hearing considering the plan in February 2024.
For more information, the company’s full statement can be read on Audacy’s website.
