Radio Giant Audacy files for Chapter 11 bankruptcy, owner of stations KROQ, WFAN and KCBS

Broadcasting organization Audacy filed for bankruptcy today, a move due to declining radio advertising.

The company owns KROQ and KCBS in Los Angeles and WFAN and WINS in New York, but the move is not expected to have an immediate impact on day-to-day operations. According to the Wall Street Journal, Audacy has already negotiated a ready-made bankruptcy plan with its lenders. Lenders are expected to take over the company as part of the restructuring.

Audacy is the largest radio station in the United States after iHeartMedia. It has 235 radio stations in 48 markets

The Philadelphia-based broadcaster filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas. Audacy is expected to reduce its nearly $2 billion debt load by about $1.6 billion, leaving $350 million in debt after the restructuring, according to a company statement.

A group of lenders will provide approximately $57 million in receivables financing for the process.

Audacy operates hundreds of music, news and sports radio stations and offers streaming services through its mobile app. The company was founded in 1968 as Entercom Communications and merged with CBS Radio in 2017. After the CBS merger, the company operated under the name Radio.com before rebranding to Audacy in 2021.