(Bloomberg) -- Audacy Inc., the bankrupt radio broadcaster, won regulatory approval for the transfer of its licenses to a nonprofit funded by billionaire George Soros, paving the way for the company to emerge from Chapter 11.
Under the restructuring approved by the court in February, the new, closely held company will be controlled by the Fund for Policy Reform, a Delaware nonprofit, according to an FCC filing Monday. It will be governed by a four-person board, including Alexander Soros, son of the billionaire investor.
FCC approval arrived nearly seven months after courts backed a reorganization plan that handed control of the company and its 200-plus stations to creditors including Soros Fund Management and wiped out the old shareholders. Audacy’s exit from bankruptcy is expected within days, the company said.
The transfer of the licenses was opposed by two FCC members, Brendan Carr and Nathan Simington. It also faces scrutiny from Republican lawmakers concerned about the senior Soros’ role at the company.
Republican Representatives James Comer of Kentucky and Nick Langworthy of New York, both members of the House Committee on Oversight and Accountability, announced an investigation into the FCC’s approval proceedings last week. They said the agency overlooked foreign ownership concerns to facilitate Soros’ ownership stake.
“The FCC appears to be bypassing standard processes and procedures in an unprecedented way to benefit a Democrat megadonor acquiring a major equity stake in hundreds of local radio stations across the country,” they said in a letter.
In its filing Monday, the FCC said the four members of the board at the Fund for Policy Reform are US citizens.
Debt at the new Audacy will be reduced by $1.6 billion to $350 million, according the FCC filing. David J. Field will continue as chief executive officer and will serve on the company’s board.
“We’re big believers in audio, and we’re very well positioned to exceed and excel going forward,” Field said in an interview Monday. “We’ve continued to really enhance our ad tech, data capabilities, and content and have emerged as a much stronger company than we were a year or two ago.”
Audacy will continue to focus on sports radio and podcasts, buoyed by assets acquired in a merger with CBS Radio in 2017, as well as podcasting more generally and its Audacy app for streaming on demand.
“We now have the industry’s strongest balance sheet,” he said.
In response to the Republicans, Field said the FCC considered Audacy’s transfer application for months longer than it had in prior radio conglomerate restructuring efforts.
“Under Trump and Biden, they were handled and approved in less than three months,” Field said.
Audacy filed for bankruptcy in Texas in January 2024 after reaching a pact with creditors that would hand them ownership in exchange for slashing its debt.
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