Judge Okays Audacy Emergence Plan

A US Bankruptcy Judge has granted Audacy's request to extend its financial obligation pause due to delays in the FCC's approval of its post-bankruptcy restructuring plan. 

Here's a breakdown of the situation: 

Audacy's Chapter 11 emergence plan has been pending with the FCC for six months, despite receiving court approval in February.

The company this month filed an emergency motion to extend the pause on certain financial obligations due to the delays.

Judge Christopher Lopez approved the motion after a hearing on Thursday, extending the forbearance period to September 30. The extension allows Audacy to continue its restructuring efforts while awaiting FCC approval.  The restructuring plan aims to reduce Audacy’s total debt by 80%, from approximately $1.9 billion to about $350 million1.

The ruling provides Audacy with more time to navigate the regulatory approval process and move forward with its restructuring plan.

Despite the court’s approval, Audacy’s reorganization plan has faced delays at the Federal Communications Commission (FCC).

Conservative Republicans on Capitol Hill, including influential Texas Senator Ted Cruz, have raised concerns about the plan, particularly regarding liberal activist George Soros’s potential influence over the company’s radio stations.

George Soros’s Involvement: Soros Fund Management is set to become Audacy’s single-largest institutional investor once the company emerges from bankruptcy protection.

Some Republican lawmkera believe that Soros’s influence could impact how Audacy’s radio stations are operated.