Audacy Asks FCC To Reject Challenging Petitions

Audacy's has moved to dismiss challenges to its emergence from bankruptcy is based on its claim that its level of foreign ownership is now below the FCC’s threshold.

Initially, the FCC had temporarily waived its 25% cap on foreign ownership for broadcast companies to approve Audacy's bankruptcy plan1. However, after transfers of stock, foreign entities now control 20.2% of its equity and 24.5% of the voting interest, which is below the FCC’s threshold.

Critics have raised concerns about foreign influence and potential liberal bias in Audacy's content, accusing the commission of giving the plan a “Soros shortcut” for political reasons. Supporters argue that the FCC has granted foreign influence waivers in the past without issues and that the commission has no role in regulating the political leanings of a broadcast company1.

The FCC approved Audacy’s reorganization plan with a 3–2 party-line vote last fall.

Laurel Tree Opportunities Corp., an investment firm tied to George Soros and Soros Fund Management, has become the largest shareholder in Audacy, holding an estimated 40% stake. The company purchased up to $400 million of Audacy debt and was repaid with stock in the restructured media company1.

Critics, including the Media Research Center (MRC), argue that Soros and his affiliated businesses aim to control these radio stations to advance their activism. Incoming FCC Chairman Brendan Carr voted against the plan, criticizing the commission for adopting a "special shortcut" to approve it1. Carr has indicated that the decision will receive fresh scrutiny

Here are the key points:

Background

• Audacy filed for Chapter 11 bankruptcy protection in 2023.
• As part of its restructuring, the company reduced its foreign ownership levels.

Current Situation

• Audacy claims that its foreign ownership is now below the FCC's 25% threshold.
• The company argues that this reduction in foreign ownership addresses concerns raised by the FCC and other parties.

Motion to Dismiss

• Audacy has filed a motion to dismiss challenges to its emergence from bankruptcy.
• The company asserts that the reduced foreign ownership level resolves any issues related to FCC regulations.

Implications

• If the motion is granted, Audacy can proceed with its restructuring plan.
• The company can emerge from bankruptcy, having addressed concerns related to foreign ownership.

Next Steps

• The court will review Audacy's motion and consider arguments from all parties involved.
• A decision on the motion will determine the next steps in Audacy's bankruptcy proceedings.