Audacy receives a 30 day extension to perform missed debt payment

[MWmetalhead]

The latest batch of 1st lien and 2nd lien payment grace periods expires December 10 or December 11, depending on the instrument.

What's interesting with the latest 8K filing - posted late in the day November 30 - is that the resignation of JPMorgan as 1st lien administrative agent was announced.

This usually means one of two things:
- JPMorgan sold its entire position (or plans very soon to sell its entire position) in the 1st lien debt.
- There is a conflict of interest that could interfere with JPMorgan's ability to make recommendations relative to the administration of the 1st lien credit agreement in a manner that is in the best interest of the 1st lien credit syndicate. This could be as simple as JPMorgan holding some of the 2nd lien debt, which in bankruptcy would obviously be subject to different (and less favorable) treatment in a plan of reorganization as the 1st lien debt. I have no idea if JPM holds any of the 2nd lien debt or not.

[MWmetalhead]

WSJ reported this morning that a BK filing - likely with a prepackaged plan of reorganization - is days away from occurring.

The report was sparse on plan details.

[A1B1C1D1]

Soros finds value in radio! I was looking at buying Townsquare stock for the dividend, but when they cut it the value will drop to Beasley levels. Then I looked at loading up on Beasley, but seeing how cheaply the Audacy bondholders are being bought off I thought better of it.

Warren Buffet is buying a chunk of XM, and I agree that it is one of the few media companies worth buying. They have something worth paying for, the subscription value is about paying for ease over tapping your phone a bunch to hear the noise you want. They also pay a dividend.

I assume Audacy bondholders will get the remaining shares of stock after the bankruptcy.

[MWmetalhead]

A chapter 11 BK is inevitable for Beasley, in my opinion. Their cash flow leverage ratio is horrendous, and they are burning through cash quickly.

I would steer very clear of their stock (which is thinly traded in the first place).