We propose a system for audio coding using the modulated complex lapped transform (MCLT). In general, it is difficult to encode signals using overcomplete representations without avoiding a penalty in rate-distortion performance. We show that the penalty can be significantly reduced for MCLT-based representations, without the need for iterative methods of sparsity reduction. We achieve that via a magnitude-phase polar quantization and the use of magnitude and phase prediction. Compared to systems based on quantization of orthogonal representations such as the modulated lapped transform (MLT), the new system allows for reduced warbling artifacts and more precise computation of frequency-domain auditory masking functions.