Atlanta-based radio giant Cumulus Media has filed to reorganize in Chapter 11 bankruptcy, with $2.4 billion in debt. It has reached an agreement with 69% of its term loan holders.
Cumulus’ pre-packaged restructuring agreement with lenders will reduce the company’s debt by more than $1 billion. The filing took place at United States Bankruptcy Court for the Southern District of New York.
Earlier this month, Cumulus defaulted on a nearly $24 million debt payment to its lenders. The stock will continue to trade on the OTC (over-the-counter) market, where it moved after being delisted at NASDAQ last week. The company will also cease paying interest on bonds or interest that will accrue on bonds during its financial restructuring process, according to a post on the company website.
Cumulus Media owns and operates 446 radio stations in 90 U.S. media markets, including such venerable outlets as news/talk KABC and classic rock mainstay KLOS in Los Angeles, Triple A giant KFOG and rock station KSAN in San Francisco, along with talker WABC and Hot AC WPLJ in New York. Cumulus expects all operations, programming and sales to continue as normal throughout the restructuring, insisting it has enough money on hand along with continuing revenue to keep the doors open.