In Form 8-K filed by Cumulus Media Inc. on November 1, 2017, the Restructuring Committee of the Company’s board of directors authorized the Company to forgo the scheduled interest payment on November 1, 2017, thereby entering into the applicable 30-day grace period under the terms of the Indenture. Such nonpayment constitutes a “default” under the terms of the Indenture, which matures into an “Event of Default” if such “default” is not cured or waived before the expiration of the 30-day grace period on December 1, 2017.
On November 2, 2017, S&P Global Ratings lowered its corporate credit ratings on Cumulus Media Inc. and its subsidiary Cumulus Media Holdings Inc. to SD from CCC and its 7.75% senior notes due 2019 were lowered to D from CC. According to S&P Global, the downgrade follows Cumulus’ recent announcement that it didn’t make a $23.6 million interest payment on its 7.75% senior notes due 2019. S&P also believes the nonpayment signals that a restructuring, either out of court or through an in court reorganization, is likely imminent. Read more on distressed companies.
The post Cumulus Media Forgoes Interest Payment appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.