Management stays, the public shareholders are out, and the funded debt is gone. Cumulus Media has completed its Chapter 11 restructuring and emerged as a privately owned company after clearing its last remaining regulatory hurdles following FCC approval.
Cumulus says the restructuring finished on an accelerated timeline consistent with its original expectations, and that it operated in the ordinary course throughout, with no disruption to operations, audiences, or advertisers.
The broadcaster has appointed a new Board of Directors upon emerging as a privately owned company and will remain under the leadership of its existing management team. In July, Radio Ink reported that Alden Global Capital President Heath Freeman would hold a 31.86% voting interest in the reorganized company.
Cumulus Media CFO Frank Lopez-Balboa filed a certification and notice of termination of registration with the SEC. The filing ends the company’s obligation to publicly disclose its quarterly and yearly financials. The move follows a path similar to Audacy, which no longer discloses its earnings after emerging from its 2024 bankruptcy and going private.
Cumulus began a prepackaged Chapter 11 process in the US Bankruptcy Court for the Southern District of Texas on March 4, under a restructuring support agreement with a group of its lenders. Under the confirmed plan, Cumulus canceled 100% of its existing funded debt, approximately $600 million, in exchange for 100% of its reorganized equity and $50 million of new convertible notes issued to former lenders. The company also amended and restated its asset-based revolving credit facility to provide continued liquidity.
Cumulus Media President and CEO Mary Berner said, “I am grateful to our lenders and noteholders for their collaboration throughout this process, and to our employees, vendors, affiliates, customers, and partners for their continued trust and support. Emerging with a significantly stronger balance sheet, we are more committed than ever to providing engaging content across our national footprint, serving as a lifeline and voice for the local communities we serve, driving meaningful growth for our advertising partners, and delivering value for our new shareholders.”
