A plethora of filings, motions and orders were made on day one of Cumulus’ Chapter 11 Bankruptcy proceeding in front of Judge Shelley Chapman. Those documents include giving Cumulus the authority to pay its past due bills to Nielsen and continue doing business with the ratings firm. Nielsen was owed millions of dollars and the two companies recently signed a new contract to continue working together going forward. Cumulus was also given the OK by the judge to continue paying its employees, air talent, insurance and taxes, the expenses that need to be covered in order to keep the company operating.
In all, 18 documents were filed totaling about 150 pages. The case is expected to have many more court appearances before it’s all said and done. Cumulus is hoping to come out of bankruptcy around May of 2018 with about $1 Billion less in debt. It filed for Chapter 11 with over $2 Billion in debt. If this bankruptcy plan is approved by the court, Term Loan Lenders will receive 83.5% equity in the company. Unsecured creditors will received 16.5% equity.
Cumulus has over 440 radio stations and approximately 6,000 employees. The Company has said it has enough cash on hand, combined with funds generated from ongoing operations, to support the business during the restructuring process.