Cumulus Speeding Toward Chapter 11 Exit
Yesterday (4/13) in U.S. Bankruptcy Court in Houston the Modified Joint Prepackaged Chapter 11 Plan of Reorganization of Cumulus Media Inc. and Its Debtor Affiliates was filed. While the proposed order has yet to be approved by the judge, it is expected to be approved soon and clears the
way for the reorganization to move to the next step – approval from the Federal Communications Commission. When fully consummated, the plan will have eliminated $592 million of debt for Cumulus and puts control of the company into the hands of secured creditors. A new board of directors will be elected and although current executive management may remain in their positions, it is entirely up to the new board of directors to determine the company’s officers.