Audacy Inc., a national broadcasting company that owns several radio stations in Connecticut, including WTIC, has begun prepackaged Chapter 11 bankruptcy proceedings as it seeks to restructure $1.9 billion in debt.
The Philadelphia-based company owns WRCH “Lite 100.5 FM,” WTIC-1080 AM, WTIC-96.5 FM and WZMX “Hot 93.7” in Hartford, along with WDUP-92.9 FM in New London.
Audacy, formerly known as Radio.com, filed a petition in the U.S. Bankruptcy Court for the Southern District of Texas on Sunday. In the filing, it lists assets of $1 billion to $10 billion.
After restructuring, Audacy would be left with roughly $350 million in debt.
In a press release, Audacy said it “does not expect any operational impact from the restructuring.”
Audacy is one of the largest owners of radio stations in the United States. In 2017, it acquired CBS Radio.
In a statement, Audacy’s Chairman, President and CEO David J. Field said the company has transformed into a podcasting, audio streaming, live events and digital marketing company, but has seen sharp declines in radio advertising.
“With our scaled leadership position, our uniquely differentiated premium audio content and a robust capital structure, we believe Audacy will emerge well positioned to continue its innovation and growth in the dynamic audio business,” Field said.
Audacy said it expects the bankruptcy court to hold a hearing on its restructuring plan in February.
According to the petition, Audacy has between 5,000 and 10,000 creditors, the largest of which are Wilmington Savings Funds Society Bank and Deutsche Bank. Other creditors include CBS Interactive, Amazon Web Services, Spotify, Fox Corp., iHeartMedia and Meta.
