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Audacy stock hits a new low.

Delisting is the main fear, and large corporations always seem to find various ways to avoid that particular "death penalty." I don't think Audacy could survive as a going concern if it were a penny stock.
 
JJSPC said:
22.51 cents earlier today. Opinions on what steps will be next for the company to survive?
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The stock price does not necessarily indicate the ability to survive of a company. It just indicates what investors thing the future potential of the investment is.

A $1 dollar a share stock is not worse than a $500 a share stock. For example, a company worth $1000 could issue two $500 shares or 100 at $1. The company is still worth $1000 no matter what.

And there are companies, particularly in new technology, that make no money at all for years yet see the stock price increasing up into the clouds... the value of perceived future potential.

Audacy can ride it out, and hope to renegotiate its loans as the station group itself is profitable. Or they could convert the loans to equity, such as what Clear Channel did in part. Or they could find a buyer who would assume the loans, perhaps renegotiated so that BCF would cover debt service.
 
CTListener said:
Delisting is the main fear, and large corporations always seem to find various ways to avoid that particular "death penalty." I don't think Audacy could survive as a going concern if it were a penny stock.
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Many see a conversion of debt to equity as being the only viable solution.
 
I'm in the camp that says delisting doesn't matter. All that happens is you lose your spot at the table. People can continue to trade your stock over the counter. I seem to recall that you get assigned different letters for an OTC stock. The main factor for this company is that the Field family owns a lot of stock. So the issue of stock price is really only important to them. They have to decide how big a haircut they want to take, and do they want to take on a partner and share that equity that they have. That wasn't the case for Cumulus or iHeart.

My take is that their lenders aren't too concerned, because the company is still paying interest on its debt. When Cumulus got delisted, they stopped paying interest on their debt, and within a year or so they went bankrupt. But as long as they keep the lenders happy and don't default on their payments, things should continue, except as an OTC company.
 
TheBigA said:
My take is that their lenders aren't too concerned, because the company is still paying interest on its debt.
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The lenders should be concerned. Audacy's publicly traded debt instruments are trading at less than half face value, meaning the markets are pricing in a high probability of default.

TheBigA said:
When Cumulus got delisted, they stopped paying interest on their debt, and within a year or so they went bankrupt.
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It took 28 days from Cumulus formally going into default to filing bankruptcy: Radio Station Operator Cumulus Media Files for Bankruptcy
 
PTBoardOp94 said:
The lenders should be concerned. Audacy's publicly traded debt instruments are trading at less than half face value, meaning the markets are pricing in a high probability of default.
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The aspect of this that's different from the other examples is that the Field family has a stake in all this. As far as I know the family hasn't changed that situation. Compare this to Cumulus. In 2011, Lew Dickey made a deal with Crestview where he basically cashed out of the company, and became an employee of the Board of Directors. Then a few years later, the stock crashed. Crestview had the power to replace him. In the Audacy case, I don't know if the CBS stockholders still have a stake in the company, or if that expired. Because they may be the only ones who could call the question on David Field.
 
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