ATLANTA, Georgia — Cumulus Media announced October 16 that it has emerged from Chapter 11 bankruptcy as a privately owned company, completing a restructuring that it says eliminated approximately $550 million in debt.
The broadcaster said in its October 16 announcement, distributed through GlobeNewswire, that it had received all required approvals, including from the Federal Communications Commission. Cumulus has appointed a new board of directors, while President and Chief Executive Officer Mary Berner and the existing management team remain in place.
The previously announced restructuring agreement called for lenders to receive the reorganized company’s equity and $50 million in new convertible notes in exchange for cancellation of its existing funded debt. Radio Ink reports that the completed transaction follows those terms. The reduction should not be confused with an elimination of all debt.
Cumulus says operations continued normally during the proceedings, without disruption to audiences or advertisers. That is the company’s account, not an independent assessment of every station.
The change reaches a major local-radio and syndication business: Cumulus’s current website lists 377 owned-and-operated stations in 84 markets and more than 7,800 Westwood One affiliates.
The announcement does not establish what the new ownership will mean for individual stations’ staffing, programming or investment budgets. Radio News Now’s question: What measurable commitments will the new owners make to local programming and the employees who produce it?