Audacy’s trip through Chapter 11 bankruptcy is a wrap. Bankruptcy Court Judge Christopher Lopez has issued the final decree closing Audacy’s reorganization process.
“The remaining case is hereby closed; provided, that this court retains jurisdiction as provided in the plan and combined order,” Lopez wrote in a document signed by the court on Monday.
The decision brings to a close a proceeding that lasted just over 12 months and allowed the radio broadcaster to restructure its debt and trim it from $1.9 billion to about $350 million.
The court’s final decree stipulates that Audacy file a post-confirmation quarterly report and pay all quarterly fees that are due, according to the court document.
“Following the completion of the services … (Audacy) shall have no further obligations to this court or any party in interest with respect to the claims, noticing and solicitation services in the Chapter 11 case,” the court filing says.
The judge’s order marks the successful completion of the reorganization process, according to the decree. Audacy’s exit from bankruptcy was expected following the FCC’s approval of the company’s bankruptcy plan in September.
However, Audacy’s bankruptcy process has drawn criticism from Republican corners. While the FCC gave its approval to Audacy’s restructuring plan in a 3-2 vote along party lines this past fall, new FCC Chair Brendan Carr voted against it.
In approving the company’s bankruptcy, the FCC agreed to temporarily waive the 25% cap on foreign ownership in broadcast companies, but Audacy recently told the FCC the reorganized company won’t exceed the maximum allowed limit of foreign ownership.
[Related: “Audacy: Concerns Over Foreign Ownership Are Moot“]
Still, other issues persist for conservatives, including the ownership share that billionaire liberal philanthropist George Soros holds in the new Audacy. Soros Fund Management, which is run by his son, Alex Soros, is a major investor in Laurel Tree Opportunities Corp.
The Soros-connected company purchased up to $400 million of Audacy debt and was repaid with stock in the restructured radio and podcast company. The Soros family is estimated to hold a 40% stake in the new Audacy.
Chairman Carr at the time of the FCC vote last year complained that the commission had adopted a “special shortcut” to approve it. “Unless and until the commission changes our rules, I cannot support the special shortcut adopted,” Carr said in his dissent.
Carr has since been quoted by several media outlets saying the decision will receive fresh scrutiny, but he has not addressed the issue since ascending to FCC chair.
An Audacy spokesperson Tuesday declined further comment on recent speculation.
On Wednesday, Audacy announced that President/CEO David Field is stepping down.