Audacy prepares Chapter 11 while facing ~$2B debt

Radio/audio giant Audacy is reportedly undergoing bankruptcy negotiations with lenders, as reported by The Wall Street Journal. The company has not yet responded to RAIN’s reach-out for comment and context.

The expectation is that Audacy will file for Chapter 11 protection as it renegotiates approximately $1.9-billion in debt.

We see some analysis that the burdensome and precarious financial situation harks back to the 2017 merger of the company (then called Entercom) with CBS (RAIN coverage HERE). Equity research analyst Craig Huber, of Huber Research Partners, is quoted in RadioWorld calling that merger “ill-advised,” and estimated that it added about $1.5M in debt. “[It] became the undoing of the company,” Huber said.

The WSJ identifies PJT Partners and Latham & Watkins as working with Audacy on debt restructuring.

Audacy is parent company to two acquired podcast studios, Cadence 13 and Pineapple Street Studios.