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Published: February 20, 2024 at 7:37 PM ET
Radio and podcasting giant Audacy has been given court approval to emerge from bankruptcy, with George Soros’ investment fund expected to become its largest shareholder.
The U.S. Bankruptcy Court for the Southern District of Texas on Tuesday approved Audacy’s plan to emerge from the Chapter 11 process the company filed for in January. Audacy said it plans to emerge from bankruptcy if approved by the Federal Communications Commission.
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Radio and podcasting giant Audacy has been given court approval to emerge from bankruptcy, with George Soros’ investment fund expected to become its largest shareholder.
The U.S. Bankruptcy Court for the Southern District of Texas on Tuesday approved Audacy’s plan to emerge from the Chapter 11 process the company filed for in January. Audacy said it plans to emerge from bankruptcy if approved by the Federal Communications Commission.
Chief Executive Officer David J. Field said in a statement that the bankruptcy court’s approval is a “strong step forward” and will allow Audacy to “pursue our strategic objectives and opportunities in the Dynamic Audio business.” Ta.
Under a pre-arranged restructuring plan, Audacy plans to reduce its $1.9 billion debt by about 80% to about $350 million.
Last week, court filings revealed that the billionaire’s investment fund, Soros Fund Management, acquired about $415 million in first-lien debt from Audacy. This means that after Soros emerges from bankruptcy, he will be one of the first creditors to be repaid in the form of shares in the reorganized company. Bloomberg News reported last week that the acquisition will make him the largest shareholder in Soros’ investment fund, Audacy.
Audacy recovered most of its debt after merging with CBS Radio in 2017. The company owns more than 200 radio stations across the United States, including WFAN and WINS in New York, KROQ in Los Angeles, and KCBS in San Francisco. Audacy said in its bankruptcy filing that it faces a “perfect storm of persistent macroeconomic challenges,” including a rapidly growing advertising market.
audacy stock
audak
was delisted from the New York Stock Exchange in November and is currently traded over the counter. The stock has fallen 97% in the past 12 months, but rose 44% on Tuesday to 20 cents, its highest since early January.
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