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.
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. 
Audacy agrees to pay BMI $550,000 in settlement of those claims. Audacy and BMI agree to resolve the fee dispute with 60 days of BMI’s merger. Based on the results of the 2017-2019 Audit, BMI asserted that Audacy owed approximately $1.68 million in fees to BMI. Audacy disputed BMI’s claim and, since 2020, has been negotiating with BMI to settle that matter and any potential claims relating to Audacy’s 2020 revenue subject to license fees. BMI has also asserted that Audacy owes approximately $9.26 million in unpaid license fees and accrued late fees, which Audacy disputes. Audacy says in its filing that this “Settlement is in the best interest of all stakeholders (including Debtors’ secured creditors, the only impaired parties) because it will, subject to the closing of the merger, bring in at least $25 million of funds to the Debtors’ estates (potentially within days of this settlement being approved), with the possibility for up to an additional $13.6 million in the following months.”