💥New Chapter 11 Bankruptcy Filing - Audacy Inc.💥

Long-anticipated distressed company filed prepack to shed over $1.5b of debt.

On January 7, 2024, PA-based Audacy Inc. and 47 subsidiary affiliates (collectively, the “debtors”) filed their long-anticipated* chapter 11 bankruptcy cases in the Southern District of Texas (Judge Lopez).

In advance of the filing, the debtors reached an agreement with their lenders (the “RSA”)** on a deleveraging transaction (and DIP commitment) that in the absence of any big surprises ought to have the debtors headed towards a February plan confirmation hearing (after which the timing of their emergence from BK will be determined by FCC regulatory approval). The deal equitizes over 80% of the pre-petition funded debt, dropping total debt from ~$1.9b to $350mm, with the first lien claims getting 75% of the post-reorg equity (and second-out exit term loans) and the second lien claims getting 15% (subject to dilution).