A federal bankruptcy judge has approved Audacy’s request for a six-week extension of an important debt deadline.
As we reported earlier this week, Audacy filed an emergency motion to push back a key maturities date to the end of September. As a result, a short hearing was held Thursday in front of Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas in Houston.
Audacy explained to the judge that it is still awaiting FCC approval of its Chapter 11 reorganization.
“We had always anticipated that it would take approximately 4 to 6 months to receive FCC approval from or after the date from which the application was submitted,” bankruptcy lawyer Caroline Reckler of Latham & Watkins told the judge in the hearing, “and we remain within that window, albeit at the latter end.”
She said Audacy is optimistic it will receive FCC approval soon.
“That said, the FCC’s actions are ultimately outside of our control and there is no deadline by which the FCC must act.”
The judge’s approval of the emergency motion essentially preserves the status quo of agreements between the company and its lenders for another six weeks.
Reckler told the judge Audacy had “worked diligently with our lenders to extend the maturities deadlines through Sept. 30. We very much appreciate the lenders’ support. They’ve worked very cooperatively and constructively with us to get the company ready to emerge from bankruptcy and on these extensions.”
