Cumulus Successfully Navigates Restructuring, Leaves Bankruptcy

– Cumulus

Cumulus Media Inc., announced June 4 that it has emerged from Chapter 11, reducing debt by more than $1 million.

The company filed for bankruptcy in November of 2017, at the time saying it expected all operations, programming and sales to continue throughout the process. Approximately 69 percent of the company’s term loan would be held by lenders, but common stock would be canceled and would not receive recovery in the restructuring plan.

“Over the last two years, we have been relentlessly focused on our plans to turn the company around, and the completion of our financial restructuring process is a monumental step forward on our turnaround path,” Cumulus president and CEO Mary Berner said in a statement. “With this financial restructuring now behind us, we are excited about what we will be able to accomplish with all of our resources and energy fully focused on our operating business.”

The more than $1 billion in debt reduction was thanks to a loan bearing interest at LIBOR plus 450 basis points, due in 2022. Also, in accordance with the terms of the financial restructuring process, more than 11 million shares of Class A common stock, 5 million shares of Class B common stock, and 3.7 million shares of common stock will be issued to certain former stakeholders in exchange for their prior claims.

Cumulus Media controls 446 owned and operated radio stations in 90 U.S. media markets and claims to be the nation’s leading provider of country music and lifestyle content through its NASH brand.

Cumulus/Westwood One is the exclusive radio broadcast partner to brands including the NFL, the NCAA, the Masters, the Olympics, the Grammys, the Academy of Country Music Awards, the American Music Awards, Westwood One News, and more.