On Friday, A U.S. District Court judge rejected the refinancing plan Cumulus hoped would help reduce its $2.4 billion debt load. Cumulus filed suit in December, accusing lender JPMorgan Chase & Co of withholding consent to part of the plan. Cumulus had said that JPMorgan’s actions threatened a deal with bondholders that could reduce its debt by more than $300 million.
Here’s a statement from Cumulus after the ruling. “While we are certainly disappointed by the court’s decision, we will continue to review all available options to address our balance sheet issues. We are making solid progress in our turnaround, and remain focused on exploring strategies that would give us the runway needed to fully execute our plan.”
The lenders argued that the plan wasn’t permitted under Cumulus’ credit agreement, and U.S. District Judge Katherine Polk Failla has now taken that position as well, saying of the credit agreement, “I do not believe it permits the proposed refinancing.”
