Cumulus Media has announced that it has “successfully completed” its financial restructuring and emerged from the Chapter 11 reorganization process, following receipt of all required approvals, including from the FCC.
The restructuring was completed on an accelerated timeline “consistent with the company’s original expectations,” Atlanta-headquartered Cumulus announced following the opening of U.S. financial markets on Friday.
In a prepared statement, Cumulus Media President/CEO Mary Berner commented, “I am grateful to our lenders and noteholders for their collaboration throughout this process, and to our employees, vendors, affiliates, customers, and partners for their continued trust and support. 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.”
Upon completing its restructuring and emerging from Chapter 11 as a privately owned company, Cumulus has appointed a new Board of Directors and will remain under the leadership of its existing management team.
As previously reported by RBR+TVBR, a FCC filing indicates that one of Cumulus Media’s largest post-bankruptcy stakeholders will be Heath Freeman, the President of Alden Global Capital. Alden is notorious for its newsroom cuts across the daily print publications it owns; ahead of the emergence from debtor-in-possession status, Cumulus Media engaged in a significant reduction-in-force initiative impacting on-air, production and programming positions at the company’s stations.
Getting to privatization saw Cumulus and related subsidiaries agree to enter into a pre-packaged Chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Texas on March 4, pursuant to a comprehensive restructuring support agreement with a group of its lenders.
Under the terms of the company’s confirmed plan of reorganization, Cumulus has canceled 100% of its existing funded indebtedness — approximately $600 million — in exchange for 100% of Cumulus’s reorganized equity and $50 million of new convertible notes issued to former lenders.
Cumulus, whose assets include national audio business Westwood One, also amended and restated its asset-based revolving credit facility to provide continued liquidity going forward.
The FCC on August 20 granted approval of the privatization and emergence from Chapter 11 bankruptcy protection of Cumulus Media — with promises. To get the Carr Commission’s sign-off on the plan, the company has agreed to a pledge to retain newsroom staff — for 24 months, at least. Cumulus made no similar pledge regarding on-air or support staff in any other department of its radio stations.
Berner, who has led the company since 2015 and directed it through its first bankruptcy restructuring some eight years ago, and Chief Financial Officer Frank López-Balboa will remain under amended employment agreements.
