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Cumulus Bankruptcy Plan Filed

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Cumulus Media filed with the U.S. Bankruptcy Court a Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “The Plan is the final step of the Company’s balance sheet restructuring. Among other benefits, the Plan: Reduces the Company’s pro forma indebtedness by $1.039 billion versus its existing capital structure; capitalizes the Company with favorable debt terms, including an extended maturity date; and has the support of the requisite majorities of the Debtors’ prepetition secured lenders, the Debtors’ largest creditor constituency. Through the restructuring, the Debtors expect to create a sustainable capital structure that positions Cumulus Media for success in the demanding radio broadcasting industry.”

In addition, “The Plan’s deleveraging of the Debtors’ balance sheet affords the Company a ‘fresh start’ and provides a foundation for the long-term sustainability of the Company’s businesses for the benefit of its employees and customers….Each Holder of a Credit Agreement Claim will receive its pro rata share and interest in: (i) $1.3 billion in principal amount of first lien term loans (the ‘First Lien Exit Facility’); and (ii) 83.5% of the issued and outstanding amount of the New Securities, subject to dilution on account of the Management Incentive Plan (the ‘Term Loan Lender Equity Pool’)….On the Effective Date, the Credit Agreement Claims shall be Allowed in the aggregate principal amount of $1,728,614,100.06, plus accrued and unpaid interest on such principal amount through the Petition Date….On the Effective Date, the Senior Notes Claims shall be Allowed in the aggregate principal amount of $610 million, plus accrued and unpaid interest on such principal amount through the Petition Date.”

Read more Cumulus bankruptcy news.

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