Along Party Lines, FCC Okays Audacy Reorganizational Plan

FCC’s approval is a significant step for Audacy. The reorganization plan will allow the company to reduce its debt from around $1.9 billion to approximately $350 million. This restructuring was initially cleared by the US Bankruptcy Court for the Southern District of Texas back in February.

The FCC’s decision, which followed party lines with a 3-2 vote, enables Audacy to move forward with its Joint Prepackaged Plan of Reorganization2. This plan is crucial for Audacy to stabilize its financial situation and continue its operations in the radio and podcasting industry.

The FCC just released the text of its 3-2 decision to approve a Soros backed group’s purchase of 200+ radio stations.

The Commission’s decision today is unprecedented. Never before has the Commission voted to approve the transfer of a broadcast license—let alone the… pic.twitter.com/gnMbl2z8Jb

— Brendan Carr (@BrendanCarrFCC) September 30, 2024

FCC’s decision has sparked quite a debate among its commissioners. Chairwoman Jessica Rosenworcel emphasized that the process used for Audacy’s license transfer is consistent with past bankruptcy proceedings for other media companies, aiming for a smooth transition out of bankruptcy. On the other hand, Commissioner Brendan Carr criticized the decision as unprecedented and not in line with established federal procedures.

The FCC’s approval indeed comes with some notable conditions. The temporary waiver for foreign ownership interests allows Audacy to proceed with its reorganization while ensuring compliance with the Communications Act. Audacy must file a petition for a declaratory ruling within 30 days of completing the transaction to address any foreign ownership that might exceed the 25% benchmark.

Additionally, the continuation of the waiver for the Kansas City market is significant. It allows Audacy to maintain an interest in nine commercial broadcast radio stations, which is above the usual ownership limits. This could help Audacy maintain a strong presence in that market, potentially stabilizing its operations during this restructuring phase.