Cumulus Media’s SVP of development and strategy Collin Jones did a wide ranging interview with Rodney Ho from The Atlanta Journal Constitution this week, covering everything from emerging from bankruptcy to whether or not Cumulus stations will be coming off the iHeartRadio music app. Jones said despite some of the hiccups reported in the press, the company won every single battle in court.
The new Cumulus had its debt reduced by $1 billion after going through bankruptcy which took less than 190 days. The company went into Chapter 11 with just over $2 billion in debt and the decision to stop kicking the can down the road was made by new CEO Mary Berner. Jones told the paper Cumulus worked on, and eventually reached an agreement, with its largest group of creditors that resulted in that $1 Billion reduction. ‘”Those senior secured lenders became majority equity holders at about 80 percent. We got a signed agreement and just had to go through the bankruptcy process. It went extremely smoothly given the fact we were able to finish it in 187 days. We won every single battle in the process. Ultimately, the plan got confirmed exactly as it was laid out. That was a good outcome. There were certainly twists and turns that made good press.”
Those twists included unhappy unsecured creditors, which Jones says is not uncommon in these types of cases. “The bankruptcy code provides unsecured creditors and other junior constituents a platform to voice their opinions. There are issues over valuation and things like that. Ultimately, the plan got confirmed exactly as it was laid out. That was a good outcome.”
Moving forward Jones said, being out of bankruptcy will be great for Cumulus and great for the radio industry. “Bankruptcy slowed us down. We can now pour in gas going forward. It will be good for the industry. Our goal now is the same as before from an operational perspective: create the best brands and content we can. Provide our listeners with the best experience as possible and grow ratings. Provide solutions for advertisers that generate substantial ROI. Core traditional terrestrial radio provides 8-to-1, 10-to-1 ROI. Our goal is to continue to reinforce that message with what we do.”
Read the full interview with Jones HERE
So am I reading this correctly? The senior secured lenders own 80 percent of a company that’s still a billion dollars in debt. And that’s something to be excited about???
Who do you think “owned” the company before? Two years ago, one of the secured lenders, Crestview Partners, the company’s top stockholder, fired the company’s CEO, and replaced him with someone they preferred. She is the one who put the company through bankruptcy. The company is in better shape now, and the lenders got what they wanted. No one really fought the bankruptcy in court because this is what they hired Mary Berner to do.
Words of pride from a real, live radio typhoon! I guess we all have to let him play with the Cumulus Pinball Machines for a while longer, while he prepares for his next triumphant post. Hopefully, it’ll be something like cleaning all of the Martin Shkreli Memorial Latrines at the Bernie Madoff School of Accounting.
Being a bag of hot air does have some advantages, though. Collin’ll always be able to go sailing, regardless of wind conditions.
“We Won Every Battle In Bankruptcy.” And this good?
To underscore Mr. Sanders comments, I have never met Mr. Jones (and I hope I never will), but his bluster confirms that in spirit, and unlike Elvis and Frasier, the Dickey’s have not left the building. What a low life.
A year from now they will be back into bankruptcy, although not so successful.
This is exactly what is wrong with Radio. Unexperienced low life that couldn’t manage a soda machine running corporations worth millions of dollars. They are running broadcasting into the ground and feeling so good about themselves. Long live the loosers.
how much was his “bonus”??
Does anyone doubt that all this nonsense with forced online public files, as a pretense to eliminate the longstanding physical facility in your city of license rule; wasn’t pushed through to aid these 2-3 huge operators in their bankruptcies by letting trim costs via closing dozens/hundreds of brick and mortar locations?
It’s truly obscene.
Sure wish I could wave a magic wand and make half my debt go away. Oh wait-we don’t have any debt because we run our business in a responsible manner.
I believe no company should come out of bankruptcy until ALL creditors are satisfied. Current bankruptcy laws “encourage” companies to throw in the towel at the expense of creditors. Unfortunately, it’s back to business in the red as usual for Cumulus as they will find ways to open up more lines of credit through loop holes.
I agree with Dave Sanders, maybe we should all file bankruptcy, stiff the people that we owe money too, cut staff and the best one — RUN A POOR OPERATION and then gloat about it in a press release. BTW: Radio Ink — do a story on radio stations that are run correctly, pay their bills and have happy-happy employees!!
The outcome for Cumulus employees is good as they still have jobs and can move on with their lives.
However a Bankruptcy is nothing to brag about.
“Some”…. still have their jobs.
They won every battle… at the cost of stiffing creditors they owed money (who will suffer now because of it) and at the cost to their own, and other downstream company’s Employees.
Yeah, quite the “win” to come and gloat about.