Company that owns WWJ, 97.1, other Detroit stations files for bankruptcy

Philadelphia-based Audacy Inc., a radio company with multiple Detroit stations including WWJ 950-AM and sports-talk behemoth 97.1 The Ticket, has filed for Chapter 11 bankruptcy.

Audacy, which owns more than 230 broadcast brands nationwide, including seven in Detroit, filed Sunday. It has worked out a restructuring agreement in the prepackaged bankruptcy that will allow it to reduce its debt by 80% from $1.9 billion to about $350 million, according to a press release from the company. In a prepackaged bankruptcy, a company prepares for a financial reorganization in cooperation with its creditors.

Under the agreement, if approved in federal bankruptcy court in Texas, Audacy's debtholders will receive equity in the reorganized company. Audacy said it expects the court will have a hearing to consider approval of the plan in February, and it expects to emerge from bankruptcy once regulatory approval is obtained from the Federal Communications Commission.

Audacy CEO David J. Field said in a statement that "the perfect storm of sustained macroeconomic challenges over the past four years facing the traditional advertising market has led to a sharp reduction of several billion dollars in cumulative radio ad spending. These market factors have severely impacted our financial condition and necessitated our balance sheet restructuring.

"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.”

Audacy said it expects to operate normally during the restructuring under its current leadership team.

The company's bankruptcy comes after it reported third-quarter net revenues of $299.2 million, down 5.6% compared to $317 million in the third quarter of 2022. Its adjusted earnings before interest, taxes, depreciation and amortization were $23 million, down from $36.3 million reported in the third quarter of 2022. The company's revenues in the digital space, including podcasts, have been increasing in recent earnings reports.

khall@detroitnews.com

@bykaleahall