Audacy is set to begin negotiations with financial creditors to restructure its debt as the large New York-based radio network struggles with declining advertising revenue, WSJ Pro Bankruptcy reported. Lawyers representing two different groups of creditors have recently signed nondisclosure agreements to begin confidential discussions about restructuring Audacy’s $1.9 billion of debt. A group of senior lenders has hired law firm Gibson Dunn & Crutcher, while a group of second lien bondholders has engaged law firm Akin Gump Strauss Hauer & Feld. Audacy has been working with restructuring adviser PJT Partners and lawyers from Latham & Watkins. Revenue at Audacy has decreased and net losses have widened due to lower advertising spending, driven by macroeconomic pressures including expectations of lower consumer spending. The company said in May that its current revenue forecasts over the next year indicate it will have difficulty satisfying its debt obligations and that this uncertainty raises doubt over its ability to continue as a going concern.
