Cumulus Media has cleared its biggest remaining hurdle to exiting bankruptcy. The FCC has granted the broadcaster’s applications to transfer control of its licenses to its new shareholders, following a pledge from CEO Mary Berner that newsroom staffing will hold steady.
FCC records show the lead application was granted days after Cumulus sent a letter to FCC Chairman Brendan Carr on August 14 reaffirming its public-interest commitments and pledging to maintain current newsroom staffing levels for a minimum of two years. Cumulus filed prepackaged Chapter 11 bankruptcy in March, and a federal judge approved its reorganization plan in April.
The approval clears the way for Cumulus’s incoming ownership structure to take effect. As Radio Ink reported in July, Alden Global Capital President Heath Freeman will hold a 31.86% voting interest in the reorganized company through an entity called Next Gen Radio Enterprises LLC. Freeman has drawn criticism in the newspaper industry for aggressive staff reductions at Alden-owned publications.
In her letter, Cumulus President and CEO Mary Berner indirectly addressed rising concerns that Alden would take similar measures with its new broadcast properties, while writing, “I take this opportunity to reaffirm Cumulus Media’s longstanding commitment to operating its broadcast radio stations in a manner that serves the public interest, advances localism, supports public safety and responds to the needs and interests of the communities it is privileged to serve.”
It is worth noting that only newsroom staffing was mentioned in Berner’s pledge, leaving questions for non-news programming, sales, and numerous other departments within the company.
It is additionally worth noting that during Radio Ink‘s writing of this story, the letter appears to have been removed from the FCC’s Licensing and Management System for an unknown reason. Streamline Publishing has reached out to attorneys representing Cumulus Media.
Berner detailed Cumulus’ public service record over the past three years, saying it worked alongside nearly 2,000 local organizations and generated more than $123 million in direct donations and other community support, including over $75 million raised through fundraising drives and radiothons, nearly $50 million in support delivered through public service announcements and on-air mentions, more than 400,000 individual on-air acknowledgments and nearly 200,000 digital posts extending those local efforts.
Berner added, “The reorganization is designed to strengthen Cumulus Media’s financial foundation and enhance its ability to continue serving listeners, employees, advertisers, community partners and public-safety stakeholders across the country…We view this work not as ancillary to our business but as central to our responsibilities as a broadcast licensee.”
