Radio broadcaster Cumulus Media has emerged from Chapter 11 bankruptcy protection after completing a financial restructuring that eliminated approximately $550 million in debt and transferred ownership of the company to its former lenders.
The Atlanta-based company announced Friday that it had completed the restructuring after receiving all required approvals, including authorization from the Federal Communications Commission (FCC). Cumulus said the process was completed on an accelerated timeline consistent with its original expectations.
The company and its subsidiary businesses filed for Chapter 11 bankruptcy protection in March. The filing was part of a broader restructuring agreement with its creditors that allowed Cumulus to pursue a pre-packaged reorganization rather than begin bankruptcy proceedings without an agreed-upon financial plan, according to regulatory filings.
Under the confirmed reorganization plan first reported by Inside Radio on Friday, Cumulus canceled approximately $600 million in existing funded debt. In exchange, its former lenders received 100 percent of the reorganized company’s equity and $50 million in newly issued convertible notes. The transaction reduced the company’s debt obligations by approximately $550 million, leaving Cumulus with a substantially smaller debt burden as it continues operating its radio broadcasting business.
Cumulus also amended and restated its asset-based revolving credit facility, preserving a source of financing to support its ongoing operations and liquidity needs.
The restructuring changes the company’s ownership structure. Cumulus has emerged from bankruptcy as a privately held business, with its former lenders becoming its new shareholders. The company has also appointed a new Board of Directors to oversee its operations.
President and Chief Executive Officer Mary Berner will continue leading Cumulus, along with the company’s existing management team.
“Emerging with a significantly stronger balance sheet, we are more committed than ever to providing engaging content across our national footprint, serving as a lifeline and voice for the local communities we serve, driving meaningful growth for our advertising partners, and delivering value for our new shareholders,” Berner said in a statement.
Cumulus said its radio broadcasting and advertising operations continued normally during the bankruptcy proceedings. The company reported no interruptions to its programming, audience services or relationships with advertisers while the restructuring moved through federal bankruptcy court.
Cumulus did not announce additional investments, changes to its station portfolio or new financial projections as part of its emergence from bankruptcy. The company operates nearly 400 licensed AM and FM radio stations across the country, putting it ahead of Audacy but just behind iHeartMedia. Its syndication business Westwood One delivers news, opinion and sports programming to more than 7,800 affiliated radio stations.
