Lawmaker's Express Concern Over FCC's Pending Audacy Decision

A U-S Bankruptcy Court recently approved Audacy’s Plan of Reorganization, allowing the company to exit Chapter 11 bankruptcy proceedings pending approval from the FCC. Under the approved plan, Audacy will significantly reduce its debt from approximately $1.9B to approximately $350M. Importantly, all unsecured creditors will be paid.

Audacy is poised to capitalize on growth opportunities as a leading multi-platform audio content and entertainment company. The restructuring aims to position Audacy for success in the dynamic audio business, leveraging its exclusive premium audio content and robust capital structure upon emergence.

However, Senator Ted Cruz and other conservatives have expressed concerns about what they perceive as “George Soros’s takeover” of Audacy’s nationwide radio network. The company’s ownership structure, including foreign ownership exceeding 25%, has raised questions, and Audacy has requested an FCC waiver to address this issue. Cruz has urged fellow Republicans on the FCC to ensure a thorough review of the transaction, emphasizing the importance of transparency and accountability in licensing decisions 3.

Audacy has said it expects FCC approval of the reorganization plan by the end of September. The company hopes to shed 80% of its heavy debt by exchanging debt for equity.