Cumulus Media moved closer to exiting Chapter 11 protection after creditors overwhelmingly approved its prepackaged reorganization plan, according to filings in the U.S. Bankruptcy Court for the Southern District of Texas.
The company reported full support from lenders tied to its asset-backed lending facility and 2029 secured debt. Additional funded debt holders backed the plan at a rate of nearly 99%, giving the broadcaster strong creditor alignment ahead of a court decision.
Cumulus filed for Chapter 11 in early March after reaching a restructuring agreement with a key group of creditors that initially controlled about 72% of its 2029 debt. Court documents indicate that support from that group has since increased to more than 80%.
Under the proposed plan, approximately $592 million of the company’s nearly $700 million in prepetition funded debt would be converted into equity. The plan also calls for $50 million in new convertible notes and access to a $100 million revolving credit facility upon emergence.
The restructuring is expected to reduce annual cash interest expenses by about $49 million. The reorganized company would carry approximately $105 million in remaining debt. General unsecured creditors would be paid in the ordinary course of business.
One objection remains ahead of confirmation. The U.S. Trustee has challenged provisions related to third-party releases, arguing that creditors who did not opt out should not be treated as having consented. The company maintains its plan complies with recent rulings in the same court and distinguishes its approach from a 2024 Supreme Court decision involving Purdue Pharma.
If the court confirms the plan, Cumulus is seeking to waive the standard 14-day stay, allowing it to exit bankruptcy immediately. Any transfer of control would still require approval from the Federal Communications Commission, which operates on a separate timeline.
Leadership continuity is also part of the current plan. Chief Executive Officer Mary Berner and Chief Financial Officer Frank Lopez-Balboa are expected to remain in their roles under revised agreements. However, governance of the reorganized company will ultimately rest with a new board, which retains full authority over executive leadership decisions moving forward.
With creditor backing secured and a decision from the court imminent, Cumulus stands at a pivotal moment. Approval would mark a rapid and decisive step out of bankruptcy, reshaping its financial foundation and positioning the company for its next chapter in an evolving media landscape.
-JPS