Audacy filed for bankruptcy Sunday, succumbing to a steep decline in radio advertising, WSJ Pro Bankruptcy reported. The Philadelphia-based broadcaster filed a chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas after having reached an agreement with a majority of its creditors to hand over control of the business. As part of the deal, Audacy would 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. The Wall Street Journal reported last week that Audacy was preparing to make such a move after it missed interest payments on its senior loans in October. The company obtained consent from its lenders for a grace period so it could restructure its debt. Audacy operates hundreds of radio stations that broadcast music, news and sports, 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.
