Audacy receives bankruptcy court approval for all first day motions

Audacy announced that it has received approval from the United States Bankruptcy Court for the Southern District of Texas for all first day motions related to its prepackaged Chapter 11 proceedings, which commenced on January 7. As part of these motions, the Court granted Audacy access to $57M in financing from certain of its existing lenders. This financing is comprised of a new $32M debtor-in-possession, or DIP, term loan and a $25M upsize of the company’s existing $75M accounts receivables financing facility to $100M. The DIP financing, the upsize of the accounts receivables financing facility and the company’s cash from operations and available reserves will enable Audacy to fulfill commitments to employees, advertisers, partners and vendors. The court also authorized Audacy to continue to pay employee wages, salaries and benefits without interruption and to pay vendors and suppliers. As previously announced, Audacy entered into a restructuring support agreement with a supermajority of its debtholders. Under the terms of the RSA, the debtholders committed to vote in favor of a plan of reorganization that, when consummated, will equitize approximately $1.6B of funded debt, a reduction of 80% from approximately $1.9B to approximately $350M. The company does not expect any operational impact from the restructuring, and trade and other unsecured creditors will not be impaired.