On November 29, 2017 Cumulus CEO Mary Berner announced radio’s second biggest company at the time would be filing for bankruptcy. She said, “The debt overhang left by previous years of underperformance remains a significant financial challenge that we must overcome for our operational turnaround to proceed.” Here’s what she said yesterday when the company officially emerged from a six-month financial restructuring which will reduce debt by over $1 Billion.
Before the bankruptcy filing, Cumulus was treading water, struggling to reduce its $2 billion of debt. Berner and her management team consistently reminded investors, analysts and employees that the debt needed to be dealt with one way or the other. At the same time she focused on creating a positive company culture and reducing turnover. Revenue and ratings at some of Cumulus’ big market iconic brands was also an issue when she took over.
On Monday when Cumulus emerged from bankruptcy, here’s what Berner said. “Over the last two years, we have been relentlessly focused on our plans to turn the company around, and the completion of our financial restructuring process is a monumental step
forward on our turnaround path. We emerge today as a stronger and more competitive company, with the financial foundation that we need to move forward decisively with the initiatives that will produce the greatest benefits for the company. With this financial restructuring now behind us, we are excited about what we will be able to accomplish with all of our resources and energy fully focused on our operating business.”
The company reduced its debt from $2.34 billion to $1.30 billion.
Berner said, “I want to thank our exceptional team for their dedication and tremendous efforts through this process. Looking ahead, our employees will remain the true force driving our success as we continue to deliver premium content choices to the 245 million people we reach every week across our collection of stations and Westwood One. We are also grateful for the support of our vendors and affiliates during this process, and we look forward to working together well into the future.”
Also, pursuant to the terms of the financial restructuring, the company’s previously outstanding equity was cancelled and certain former stakeholders are being issued 11,052,211 shares of the Company’s Class A common stock, 5,218,209 shares of the company’s Class B common stock, and warrants to purchase 3,729,589 shares of common stock in exchange for their prior claims. The company has applied to have of its Class A common stock listed on the NASDAQ Stock Market under the symbol CMLS and, until such time, expect that such shares will be quoted on the OTC Pink Sheets under the symbol CMIA.