As Audacy continues to prepare for its exit from Chapter 11 bankruptcy protection, the company has filed the plan with the FCC.
Two parties will hold attributable stakes in the new Audacy. Laurel Tree Opportunities Corporation will hold at 57% controlling stake in the company. Led by trustees Leonard Benardo, Maryann Canfield, Alexander Soros, and Michael Vachon, the company is financed by the George Soros founded Fund for Policy Reform. Five Hour Energy founder Manoj Bhargava, who recently attempted a hostile takeover of Cumulus Media, will hold 9.5% through his MBX Commercial Finance LLC.
Audacy is also seeking a temporary waiver to exceed the permitted limit on foreign investment stating that the aggregate foreign ownership of the entities with the right to obtain New Common Stock in Reorganized Audacy at emergence would exceed the 25 percent limit. To ensure the aggregate foreign ownership will not exceed the 25% limit, company will insert an Equity Allocation Mechanism to convert some of their holdings to Class B Common Stock and/or Special Warrants that will cap foreign ownership on an equity or voting basis at 22.5% at most.
Due to changes in the market, Audacy will need to divest one station in Greenville/Spartanburg SC. AC “Magic 106.3” WSPA-FM Simpsonville SC will be placed in a divestiture trust led by station brokerage Kalil & Co.’s Kalil Holding Group LLC. Audacy also is seeking a waiver to continue to hold nine licenses (4 AM and 5 FM) in Kansas City MO due to 1660 KWOD Kansas City being the expanded band descendent of 1250 KYYS.
Also of note as Fund For Policy Reform also holds indirect ownership interest in Lakestar Finance, whose debt interest in Latino Media Network exceeds 33 percent of their total asset value, LMN’s stations will count towards Audacy’s attributable ownership limits in a market. Latino Media Network completed the transfer of 99.1 KFZO Denton/Dallas TX and 1140 WQBA Miami FL to a new holding company, Latino Media Holding II LLC earlier this week. Lakestar holds no interest in the new holding company.
