bkshadow
8月前
Sorry, you're making points; just not relevant to the points that I was identifying. Not a problem.
The 'not in favor' may (or may not) file objections to the Disclosure Statement and the POR. The same can be said for anyone in equity. IMO, the objections should focus on the omission of the worthless stock deductions (in amount, referenced only in text or words), the increased amount of the NOL, the amount of offset from the COD, and then a valuation allowance against such based upon 'something.'
The point is, if the holding company is worth 'nothing' and the NOLs are worth 'nothing' (as asserted in the Plan documents) then the super majority of the creditors that have pre-agreed to the Plan should have NO OBJECTION to current equity retaining the useless holding company (the Plan calls for LLCs of each of the licensee station groups).
$ 50M for equity is what PPS? $ 50,000,000 / shares. Continuing the math, what then is $ 500M in NOL deferred tax benefits worth (especially as a SPAC vehicle aka Wamu, now COOP)? Hint, previous times 10.
Just saying, and repeating, if one alleges that something is worth nothing then objecting to others that will take it seems a bit interesting. Just ask Mary Walrath. Been there, done that.
And yes, they did the 'steps' before. That's the point actually.
bkshadow
8月前
It's represented that it is already agreed to by certain of the creditors (a super majority). They have to ballot for confirmation. This isn't hop-scotch where you just skip steps. First, there are certain creditors, 2nd position, who are not in favor, particularly in the valuation by the Blackstone spinoff and the non-ratable treatment of such creditors. Second, the valuation in the Disclosure Statement appears to intentional value at ZERO the deferred tax assets of the NOL (1) carryforward and (2) from the Worthless Stock Deduction from the creation of the LLCs of each radio station group as each is abandoned by the holding company parent.
AGAIN, some creditors, and certainly equity interests, will cite such. The qualifying NOL carryforwards and the Worthless Stock losses post petition will exceed the cancellation of debt offset income by what appears to be over 1.5 BILLION. At the current tax rates, that is hundreds of millions to 'omit' from the disclosure statement and/or 'omit' from the valuation. How so? They didn't value it at all (in numbers, rather text) and then reduce it by a valuation allowance. That would be the appropriate disclosure. Why not? If no one sees it, they can't put 2+2 together.
We'll see. Many creditors and equity holders are aware. The TX Judge might not let this ride (slide) so fast once apprised of such. Think Nate Thoma. :)
trader59
8月前
Yeah, except the stock is getting cancelled....
Prepackaged Debt Restructuring Pursuant to Restructuring Support Agreement with Supermajorities of First Lien and Second Lien Debtholders
Pursuant to a Restructuring Support Agreement (as defined below) with supermajorities of its first lien and second lien debtholders, Audacy, Inc. (the “Company” or “Audacy”) and certain of its direct and indirect subsidiaries (together with the Company, the “Debtors”) intend to implement a comprehensive debt restructuring (the “Restructuring”) that will convert approximately $1.6 billion of the Debtors’ funded debt into equity of the reorganized Company, a reduction of 80% of the Debtors’ funded debt, from approximately $1.9 billion to approximately $350 million. The Restructuring Support Agreement contemplates effectuating the Restructuring through a joint prepackaged plan of reorganization (the “Plan”) of the Debtors under voluntary petitions filed on January 7, 2024 pursuant to Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”). The Company does not expect any operational impact from the Restructuring. Under the terms of the Restructuring Support Agreement, supermajorities of Consenting First Lien Lenders and Consenting Second Lien Noteholders committed to vote in favor of the Plan. The Company expects that the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”) will hold a hearing to consider the approval of the Plan in February, and expects to emerge from Chapter 11 protection once regulatory approval is obtained from the Federal Communications Commission (the “FCC”). Audacy’s Class A common stock will continue to trade over the counter under the symbol “AUDA” during the pendency of the Chapter 11 process. Upon the effective date of the Plan ( the “Plan Effective Date”), Audacy’s existing equity interests will be cancelled and receive no distribution as part of the Restructuring.
https://www.otcmarkets.com/filing/html?id=17170297&guid=oSJ-k6UIqQIzB3h
bkshadow
8月前
This pre-pack has been well planned. Headlines of those buyer senior secured positions were pre-bankruptcy reflective of such visionaries 'buying Audacy.' Seriously, tipping the hand, good to note. So now we have a debt for equity exchange. At what exchange rate? If dollar for dollar, to wit, then equity is worth it also.
Fascinating to see the same big BK players run this game ad infinite and only get consequences a couple of time (WAMU for one, the NOL valuation buried, only to be resurrected by equity members).
So, who's chomping up the shares? The same debt holders to get that equity under control.
However, could be more to it. Bringing equity along (regardless of the allowance of value) makes the preservation of the NOLs under 382 'better protected' and more valuable.
We'll see. A PETITION for Equity Committee likely in the 'drafting.'
bkshadow
10月前
The wait is because of IRC 382. In order to preserve the NOLs for the emerged debtor the basic rule is at least 50% of the new owners where existing owners (stock) and/or 'qualified creditors.' To be qualified, just in a simple term, there is generally an 18 month holding period for the debt holders to qualify to be in that group with equity.
Hopefully, AUDA management and the senior creditors are not working together in a way that will get certain debt holders to their desired holding period.
BK court will certainly not be too happy with such.
Again, probably would be good to see MW, Nate etc. in the fray on this one. Would certainly provide some sunshine.
bkshadow
10月前
If, or when, they file for bankruptcy, retail equity could probably use MW of the WAMU fame. They have "investments in subsidiaries" that, if abandoned in bankruptcy, would likely generate > $2 billion in NOLs which @ 21% is > $400M "if done right" like the HF's usually like to do without retail equity. Ho hum.
barnyarddog
1年前
.13 https://audacyinc.com/
Sales 1.25B
Income -140.70M
Market Cap 19.22M
Audacy, Inc., a multi-platform audio content and entertainment company, engages in the radio broadcasting business in the United States. The company owns and operates radio stations in various formats, such as news, sports, talk, classic rock, urban, adult contemporary, alternative, country, and others, as well as offers integrated marketing solutions across its broadcast, digital, podcast, and event platforms. It also broadcasts through its websites, podcasts, audio on-demand, and exclusive content. In addition, the company creates live and original events, including concerts and live performances. It offers its services under Audacy and AmperWave brands. The company was formerly known as Entercom Communications Corp. and changed its name to Audacy, Inc. in April 2021. Audacy, Inc. was founded in 1968 and is headquartered in Philadelphia, Pennsylvania.
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