The U.S. Bankruptcy Court for the Southern District of Texas approved radio content and entertainment company Audacy’s plan of reorganization. With the plan approved, Audacy expects to emerge from the Chapter 11 bankruptcy process after obtaining approval from the Federal Communications Commission.

Audacy commenced prepackaged Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas on Jan. 7, with certain of existing lenders committing to provide $57 million in debtor-in-possession financing, comprised of a new $32 million new term loan and a $25 million upsize of the company’s existing accounts receivables financing facility from $75 million to $100 million.

“Today’s announcement marks a powerful step forward for Audacy, positioning the company for an exciting future,” David J. Field, chairman, president and CEO of Audacy, said. “As expected, we have achieved a speedy confirmation of our prepackaged plan, which will enable Audacy to pursue our strategic goals and opportunities in the dynamic audio business. We aim to drive accelerated growth and financial performance, capitalizing on our scaled leadership position, our uniquely differentiated premium audio content and the robust capital structure that we will have upon emergence. I also want to express my gratitude to our team, who continue their outstanding work to serve our listeners and customers with excellence and fulfill our commitments without missing a beat.”

Audacy operates one of the two scaled radio broadcasting groups in the U.S., a podcast studio, the Audacy direct-to-consumer streaming platform and multiple audio networks. Audacy is also a major event producer and a digital marketing solutions provider.

Under the approved plan, Audacy will equitize approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to approximately $350 million. Trade and other unsecured creditors will not be impaired.

PJT Partners is acting as investment banker, FTI Consulting is acting as financial advisor and Latham & Watkins is acting as legal counsel to Audacy.

Greenhill & Co is acting as financial advisor and Gibson, Dunn & Crutcher is acting as legal counsel to the DIP financing lenders and the ad hoc group of first lien debtholders.

Evercore Group is acting as financial advisor and Akin Gump Strauss Hauer & Feld is acting as legal counsel to the ad hoc group of second lien debtholders.

Editor’s Note: The original version of this article incorrectly stated that Audacy operates two scaled radio broadcasting groups. ABF Journal apologizes for the error.