Bankruptcy Court Allows Cumulus to Use Cash Collateral to Continue Operations
At the most recent hearing in United States Bankruptcy Court in Houston, Judge Alfredo Pérez agreed that Cumulus Media may use cash collateral
to continue to operate its business as it makes its way through the Chapter 11 process that could be finalized in May if the pre-packaged bankruptcy plan continues to go smoothly. Attorneys for Cumulus reported to the court that the company now has the backing of 83% of its lenders for the reorganization plan that would put control of the company in the hands of the secured creditors. Once complete, the reorganization will have eliminated some $592 million of the company’s debt.