FCC Approves Audacy Reorg Plan
• The Federal Communications Commission (FCC) has formally approved Audacy’s reorganization plan, which will allow it to emerge from Chapter 11 bankruptcy.
A statement from FCC Chairwoman Jessica Rosenworcel reads: “In this decision, we approve the assignment of licenses held by Audacy, which has been under the control of a bankruptcy court, to the new Audacy, so that the company can emerge from bankruptcy proceedings. The process we use to facilitate this license transfer is identical to the one recently used by the agency in the bankruptcy proceedings of Cumulus Media in 2018, iHeartMedia in 2019, Liberman Television in 2019, Fusion Connect in 2019, Windstream Holdings in 2020, America-CV Station Group in 2021, and Alpha Media in 2021. To suggest otherwise is cynical and wrong, as this precedent clearly demonstrates. Our practice here and in these prior cases is designed to facilitate the prompt and orderly emergence from bankruptcy of a company that is a licensee under the Communications Act.”
It’s no secret that the Plan has its detractors, as the Commission voted 3-2 in favor along party lines. (See the dissenting statements from Republican Commissioners Nathan Simington and Brendan Carr here).
NAB President & CEO Curtis LeGeyt commented, “NAB is pleased to learn that the Federal Communications Commission has approved Audacy’s reorganization. While we do not take a position on the merits of this or any particular broadcast transaction, it is essential that the FCC’s regulatory processes are fair and predictable so that broadcasters can innovate and invest in their stations to the benefit of communities across the country. Make no mistake, broadcasters and our current and potential investors continue to watch the Commission closely. To ensure a vibrant future, we need a transparent, fair and predictable regulatory process for broadcast license transfers and renewals — devoid of politics — that allows local radio and television stations a fair chance to compete for the investment capital that is necessary to continue serving the public. Without it, the vital services local stations provide for free to all is in jeopardy.”
