Less than six weeks after filing for Chapter 11 bankruptcy restructuring, Cumulus Media has received approval to affirm its restructuring removing $660 million in debt.
The confirmation by US Bankruptcy Judge Alfredo R. Pérez will see Cumulus become a privately held company with its debt holders converting their debt into equity in the restructured company. Mary Berner will remain as CEO and Francisco Lopez-Balboa as CFO at least through the end of the year through new employment agreements. A new Board of Directors will be appointed. The new ownership will have the holders of Cumulus’ 2029 secured notes receiving 95% of the equity in the company. Other note holders will receive the remaining 5% equity and current shareholders being eliminated.
Cumulus will now be required to file a transfer of control application and receive FCC approval to exit Chapter 11.
Berner said, “When we initiated this prepackaged restructuring in March, we did so with a clear objective: to right-size our balance sheet to support long-term success. The court’s prompt approval of our plan keeps us firmly on track to eliminate approximately $600 million in debt and positions us to emerge with a significantly stronger financial foundation. We look forward to completing the restructuring and emerging as a well-capitalized company, better equipped to compete in the evolving audio landscape.”