Audacy, the radio and podcast giant, has filed for Chapter 11 bankruptcy protection in Texas as part of a strategic move to reduce its debt.
The restructuring plan aims to cut Audacy's total debt load by 80%, reducing it from approximately US$1.9 billion to about US$350 million.
Despite transforming into a “leading, scaled multi-platform audio content and entertainment company”, Audacy faced significant challenges working in the traditional advertising market, experiencing a substantial decline in spending over the past four years.
David Field, chief executive officer of Audacy, said it was the impact of a "perfect storm" of macroeconomic challenges.
“These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring,” Field added.
Headquartered in Philadelphia, Audacy owns and operates numerous radio stations, including notable ones like WFAN Sports Radio, New York's 1010 WINS and KCBS.
Audacy shares are down more than 97% in the last year, trading at US$0.20.