Key Points
- Cumulus Media filed for Chapter 11 bankruptcy to eliminate about $600 million in debt through a prepackaged restructuring backed by its lenders.
- The plan would give debtholders full ownership of the reorganized company and provide $50 million in new convertible notes.
- The broadcaster expects court approval within about 60 days while continuing normal operations across its 400 stations and Westwood One network.
Cumulus Media has filed for Chapter 11 bankruptcy protection as part of a restructuring plan designed to eliminate roughly $600 million in debt and place the radio broadcaster on stronger financial footing.
The Atlanta-based company filed voluntary petitions on Thursday in the U.S. Bankruptcy Court for the Southern District of Texas, launching a prepackaged reorganization process supported by a majority of its debtholders. The filing covers the company’s core operations, including its network business Westwood One and more than 400 AM and FM radio stations across the United States.
The restructuring plan calls for the cancellation of all existing funded debt in exchange for ownership of the reorganized company. Lenders would receive 100 percent of the new equity in the business along with $50 million in new convertible notes. The company’s asset-based revolving credit facility will also be amended and restated to ensure continued liquidity following the restructuring.
Cumulus expects the court to consider approval of the plan within about 60 days. The company must also obtain regulatory approval from the Federal Communications Commission before it can formally emerge from bankruptcy.
Cumulus President and CEO Mary G. Berner said the move reflects prolonged industry and macroeconomic challenges that have weighed on the company despite operational gains in certain areas.
“While we have outperformed the market on many of our most important metrics, including share gains in both local and digital revenue, the broader macroeconomic and industry-wide pressures we have faced have remained unrelenting,” Berner said in a statement. “Against that backdrop, it became clear that Cumulus’s remaining debt burden limited our ability to fully realize the Company’s potential.”
She added that the company intends to maintain normal operations during the bankruptcy process.
“The prepackaged process is intended to address the Company’s debt efficiently with no disruption to our operations, our people, and our strategies,” Berner said. “On emergence, a stronger financial foundation will better position Cumulus to continue investing in premium content, enriched audience experiences, advertiser performance enhancements, and the ongoing growth of our digital marketing offerings.”
The Chapter 11 filing marks the second bankruptcy restructuring for Cumulus in less than a decade. The company previously reorganized under Chapter 11 between November 2017 and June 2018.
The current case has been assigned to Bankruptcy Judge Alfredo Perez in Houston. Court filings describe the proceeding as a “complex” Chapter 11 case, involving more than 50 parties of interest and numerous affiliated entities.
Along with the primary filing for Cumulus Media, the company submitted concurrent petitions involving subsidiaries including Cumulus Media Intermediate Inc., Cumulus Media Investments LLC and Cumulus Media New Holdings Inc. The broader bankruptcy proceeding also encompasses dozens of affiliated operating entities tied to station ownership, networks and digital services.
Attorneys representing the company said immediate court action was necessary to facilitate an orderly restructuring process.
“An immediate and orderly transition into chapter 11 is critical” to the company’s ability to reorganize successfully, John Higgins of Porter Hedges LLP wrote in a court filing requesting joint administration of the cases.
The company filed a series of emergency motions on Thursday, including requests to continue its existing cash management system and maintain payroll and employee benefit programs. Judge Perez approved several of the initial requests within hours of submission, allowing the company to continue operating while the restructuring process moves forward.
Cumulus has faced persistent financial pressure in recent years amid declining broadcast advertising revenue and broader shifts in the audio marketplace.
In the third quarter of 2025, the company reported revenue of $180.3 million, down 11.5 percent from the prior year period. Net losses widened to $20.5 million.
Broadcast radio operations experienced some of the steepest declines. Combined broadcast revenue fell 17.2 percent to $115 million, with spot advertising down 13.1 percent and network revenue declining 26.5 percent amid weakness in the national advertising market.
Some of those declines were partially offset by growth in digital operations. Digital Marketing Services revenue increased 34 percent due to new accounts and larger campaigns, while podcast revenue grew 15 percent.
Cumulus has also undertaken significant cost-cutting measures. The company reported $7 million in annualized fixed cost reductions during the third quarter of 2025, bringing total year-to-date savings to $20 million and cumulative reductions since 2019 to $182 million.
The broadcaster has simultaneously been involved in several high-profile corporate disputes.
In 2024, Singapore-based Renew Group, led by billionaire Manoj Bhargava, accumulated a roughly 10 percent stake in Cumulus and signaled plans to expand that holding. The company responded by adopting a shareholder rights plan, commonly known as a poison pill, designed to dilute any investor exceeding a 15 percent ownership threshold.
Bhargava later reduced his position, and the company allowed the poison pill provision to expire in early 2025.
Cumulus has also been engaged in a legal battle with Nielsen over radio ratings data. In October, the company filed a federal antitrust lawsuit accusing Nielsen of leveraging its market dominance to pressure broadcasters into purchasing local ratings services. A federal judge granted Cumulus a preliminary injunction in December 2025, though Nielsen later secured a stay while pursuing an appeal.
The financial strain facing the broadcaster has also been reflected in its stock performance. Ahead of Thursday’s trading, Cumulus shares were trading for less than eight cents per share, capping a multi-year decline in market value.
The company is scheduled to release its fourth-quarter (Q4) and full-year 2025 financial results on March 12, providing a further snapshot of its financial condition as it moves through the restructuring process.
If the court approves the reorganization plan and regulators grant the necessary approvals, Cumulus expects to emerge from Chapter 11 with a significantly reduced debt load and a new ownership structure controlled by its lenders.
