The news doesn’t seem to be getting any better for radio’s second biggest company. After several delays, a press release states Cumulus has terminated its exchange offer due to the recent court ruling against the company and Cumulus “will continue its evaluation of alternatives to address its capital structure including through ongoing discussions with its stakeholders.” We may hear more about Cumulus’ financial situation this week. Cumulus reports earnings Thursday.
The court ruling the Cumulus press release is referring to came from U.S. District Judge Katherine Failla. She ruled against Cumulus in a lawsuit filed against JPMorgan Chase. The suit claimed JP Morgan breached a credit agreement and sought a declaratory judgment that it could go ahead with a major debt refinancing with bondholders. Here’s more from the Cumulus press release.
“As a result of the termination, none of the Outstanding Notes that have been tendered in the Exchange Offer will be accepted for purchase and no consideration will be paid or become payable to holders of the Outstanding Notes who have tendered their Outstanding Notes in the Exchange Offer. All Outstanding Notes previously tendered and not withdrawn will be promptly returned or credited back to their respective holders.”
It’s really kind of amazing when you think about it, they’ve been putting lipstick on this pig for a long time! I guess it gets to a point when even other pigs don’t find you attractive no matter how much lipstick you put on. Anyone got some BBQ sauce?
Has Cumulus made any attempts to improve its products and services? This is an actual question.
Meanwhile, should I blow a dollar and buy a couple of shares?
Goodbye Cumulus.