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Soros Fund Management will become the largest shareholder in Audacy (formerly Entercom), the radio station owner and podcast company that filed for bankruptcy in January.
Audacy was forced into Chapter 11 due to the cost of raising a massive $1.9 billion in debt. The bankruptcy was pre-packaged, meaning support from lenders was already in place. A court hearing is scheduled for February 20th.
Billionaire investor George Soros’ Soros Fund Management has acquired about $415 million in first-lien debt from Audacy and filed for bankruptcy, according to documents filed in bankruptcy court in the Southern District of Texas. If SFM were to break away from this, it would become the station’s largest shareholder. According to filings, Soros’ assets include nearly $280 million in term loans and a $135 million revolving line of credit.
Holders of first-lien debt, also known as secured debt, are repaid before all other interested parties. In bankruptcy, these debtors can exchange their debt for equity.
“The decision by our existing and new debtors to become Audacy equity holders represents a significant vote of confidence in the future of our company and our radio and audio business,” an Audacy spokesperson said in a statement to Deadline. Stated. “We expect to emerge from the restructuring process with a strong capital structure and a favorable position to take full advantage of our strategic transformation into a large, leading multi-platform audio content and entertainment company. We will continue to operate our business, execute our strategy, and deliver to our listeners and advertisers as we always have.”
Audacy is the second largest radio operator in the United States (second only to iHeart Media) with 225 stations in 45 markets, including KROQ and KCBS in Los Angeles and WFAN and WINS in New York. Its podcasts are downloaded more than 150 million times a month.
Entercom, founded in 1968, acquired CBS Radio in 2017 (and racked up debt). The combined company operated as Radio.com and rebranded to Audacy in 2021.
Soros Fund Management was recently part of a group of debtors that rescued Vice Media from bankruptcy.
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