Cumulus Media’s filing with the United States Bankruptcy Court in the Southern District of Texas outlines the Joint Prepackaged Chapter 11 Plan of Reorganization. In the plan’s introduction, the company lays out the reason for the Plan that, if approved by the Court, will put control of the company into the hands of an “ad hoc group of secured lenders.” After a 2018 restructuring that greatly reduced the company’s debt, and consistent efforts in the ensuing years in which it employed cost-
reduction and asset-optimization initiatives, it went into refinancing mode in May of 2024, pushing loans that matured in 2026 into 2029. The filing states, “Despite these measures, ongoing industry revenue declines and macroeconomic headwinds continued to constrain liquidity and free cash flow. As a result of these various pressures, in the last quarter of 2025, the Company, with the assistance of its advisors, began to explore various strategic alternatives and potential liquidity-enhancing transactions. After considering the available options, the Debtors and their advisors determined that the best path forward was to implement a comprehensive recapitalization transaction either out-of-court or through the filing of prepackaged chapter 11 cases.” The key provisions of the Plan are: “2029 Secured Claims will be canceled in exchange for 95% of the equity in the reorganized Company” and “Other Funded Debt Claims will be canceled in exchange for 5% of the equity in the reorganized Company.” Additionally, the current Board of Directors will be discharged and it will be up to the new Board whether it keeps any or all of the current organization’s corporate officers.
