A 181-page document posted by the U.S. Bankruptcy Court for the Southern District of Texas in Houston has put the wheels in motion — as was widely expected — on a swift emergence from Chapter 11 bankruptcy protection and debtor-in-possession status by Cumulus Media.
The agreement sees the owner of broadcast radio stations ranging from KNBR in San Francisco to WSSX in Charleston, S.C., and a wide variety of markets across the U.S., enter into a restructuring support agreement dated March 4, 2026.
Importantly, this sees Cumulus’ creditors assume control of the radio station owner and parent of national radio arm Westwood One.
As previously reported, the court’s approval of the restructuring plan will restructure roughly $660 million in debt. Cumulus will emerge as a private company with Mary Berner remaining in the CEO role and Frank López-Balboa continuing as CFO — unless a newly constituted Cumulus Media Board of Directors decides otherwise.
A new board, selected by the consenting 2029 holders, takes over on the effective date, which cannot occur until FCC consent is issued. The reorganized company will operate with plan securities exempt from Securities Act registration requirements.
Bankruptcy Judge Alfredo R. Pérez, sitting in the Southern District of Texas in Houston, signed the confirmation order on Wednesday after 48 minutes, less than six weeks after Cumulus filed for Chapter 11 protection. A prepackaged restructuring plan helped making the process a swift one, even with SoundExchange balking over the path to a cleaner balance sheet. A U.S. Trustee objection was overruled.
Cumulus had a rather clear path toward reemergence from debtor-in-possession status, as it had secured creditor support and solicited plan votes before entering bankruptcy with ABL facility claim holders, 2029 secured claim holders, and other funded debt claim holders approving the plan.
The reorganization converts the bulk of the company’s secured debt into equity.
As previously reported, holders of allowed 2029 secured claims, which the plan fixes at approximately $168.6 million, will receive 95% of the reorganized company’s new common stock along with $50 million in exit convertible notes.
Holders of other funded debt claims, encompassing 2026 notes, 2026 term loans, and 2029 deficiency claims totaling roughly $494.5 million, will receive the remaining 5% of new equity.
Previously existing shareholders will receive nothing.
The plan’s effectiveness remains conditioned on FCC approval of a transfer of control application for Cumulus’s broadcast licenses, which the company must now file.
SoundExchange secured specific carve-outs protecting its statutory royalty audit rights for calendar years 2017 through 2022, with all applicable limitation periods tolled for the duration of the bankruptcy.
The NFL’s audio rights agreement with Westwood One is assumed under the plan without modification.
In prepared comments distributed at 4:45pm Eastern on Wednesday, Berner said, “When we initiated this prepackaged restructuring in March, we did so with a clear objective: to right-size our balance sheet to support long-term success. The court’s prompt approval of our plan keeps us firmly on track to eliminate approximately $600 million in debt and positions us to emerge with a significantly stronger financial foundation. We look
forward to completing the restructuring and emerging as a well-capitalized company, better equipped to compete in the evolving audio landscape.”
— With reporting by Cameron Coats, in New York
