Audacy Inc., now privately held with majority ownership in the hands of Soros Fund Management, has reached the final stage of its Chapter 11 bankruptcy process.
The audio content creation and distribution company has filed a motion with the U.S. Bankruptcy Court for the Southern District of Texas to officially close its last remaining case, involving Audacy Texas, LLC, which was kept open to address final administrative issues.
This request comes after all required steps in the restructuring plan were completed, including approval of all fee applications and resolution of any outstanding matters.
The company filed for Chapter 11 bankruptcy in January. In February, the court approved Audacy’s reorganization plan, which was substantially completed by September. Following this, the court issued a final decree in October for all but Audacy Texas, LLC.
Audacy’s motion argues that the case has been fully administered under federal bankruptcy law. The reorganization plan has been implemented, property transfers completed, and all administrative claims paid or addressed. The company also cites business reasons for closing the case, such as eliminating the need to pay additional US Trustee fees and reducing reporting requirements, allowing the company to focus on regular business operations.
In the filing, Audacy assured that closing the case will not affect the substantive rights of any party, as all matters have been resolved. The court is expected to review the motion and issue its final decree, marking the conclusion of Audacy’s bankruptcy process.
The broadcaster has provided notice of the motion to all relevant stakeholders, including regulatory bodies, creditors, and legal representatives.
Audacy’s year-long path out of bankruptcy may still face new hurdles in 2025 as incoming FCC Chairman Brendan Carr considers revisiting the decision that allowed the company to proceed with its restructuring. The FCC, in a 3-2 vote, temporarily waived ownership limits under the Communications Act, enabling Audacy to emerge from Chapter 11 bankruptcy despite Laurel Tree Opportunities Corporation, a George-Soros-backed entity, acquiring over 40% of its senior debt – exceeding the 25% ownership benchmark.
The ownership structure could face further complications as Audacy seeks FCC approval to raise its foreign ownership cap, with a new petition acknowledging that foreign ownership could exceed the 25% threshold after certain transactions.
