Among the many documents added to the docket report in Audacy Inc. federal bankruptcy case being heard in a Houston court is a 17-page “Master Service List” outlining the top 30 unsecured creditors of the audio content creation and distribution company led by CEO David Field.
The unsecured creditors include Fox Corporation and iHeartMedia Entertainment Inc., in addition to Broadcast Music, Inc. However, Audacy has petitioned the court for an infusion of funds associated with BMI’s sale. This, in turns, settles years of back-and-forth disputes regarding royalty payments BMI claims Audacy owes.
As noted in the court filing, the top 30 unsecured creditors are:
- Adswizz
- Amazon Web Services Inc.
- Ando Media, associated with Triton Digital in Canada
- BMI
- CBS Interactive
- Claritas
- Cox Reps
- Deutsche Bank Trust Company Americas
- Fiscowl LLC
- Fox Corporation
- iHeartMedia Entertainment
- Katz Media Group
- Meta
- Neustar Information Services
- New Orleans Saints
- Paedae Inc.
- Radio Music License Committee
- Revive Media
- SEO Towncenter Inc.
- SESAC Rights Management
- Skyline Commercial Interiors Inc.
- SoundExchange
- Spectrio LLC
- Spotify USA LLC
- Stephanie Soo Yoon
- Trans Union
- Wide Orbit
- Wilmington Savings Fund Society, FSB
- ZoomInfo Midco LLC
In the case of BMI, however, an emergency motion filed Thursday authorizing Audacy to enter into a settlement agreement with the music rights organization and Otis Parent Inc. awaits the judge’s approval. Signing off on the request: Rich Schmaeling, CFO of Audacy Corp.
As previously reported, BMI was acquired by New Mountain Capital LLC along with certain affiliates, including Otis. Audacy holds shares of BMI stock, and as such will be paid out for its equity stake in the rights company.
Interestingly, in the years prior to Audacy’s bankruptcy filing, BMI and the company had been negotiating a potential resolution to two pending claims that BMI has asserted against the radio station owner. A 2017-2019 audit led BMI to assert that Audacy owed approximately $1.68 million in fees to the rights organization. Audacy disputed this. Negotiations have been going on for more than three years to resolve the matter.
There’s more: Audacy, according to BMI, owes $9.26 million in unpaid license fees and accrued late fees. This has been disputed by Audacy since 2018, when the company was known as Entercom.
Now, after “extended discussions and negotiations,” BMI and Audacy have reached a preliminary resolution. This sees a $25.4 million payment for its stock in BMI.
An additional $3.44 million is in play, too, as is a $10.14 million payment; these are pending claims.
Additionally, Audacy is agreeing to pay BMI $550,000 in full settlement of claims the company has been in dispute over for the last several years.
As of Friday afternoon, a judge’s approval of the request was still forthcoming.
