Cumulus Media, owner of 11 midstate radio stations, files for bankruptcy
Debt-ridden Cumulus Media, the owner of 11 midstate radio stations, filed for Chapter 11 bankruptcy protection on Wednesday.
The Atlanta-based company, the nation's No. 2 radio broadcasting company, made the filing in U.S. Bankruptcy Court for the Southern District of New York. Cumulus said it has entered into a restructuring agreement with certain of its lenders to reduce more than $1 billion in debt.
The company said it does not expect any disruption in operations, programming and sales during the restructuring process. And officials do not intend to seek debtor-in-possession financing.
"Over the last two years, we have focused on implementing a business turnaround to reverse the company’s multi-year ratings, revenue and EBITDA declines, create a culture that fosters motivated and engaged employees, and build an operational foundation to support the kind of performance we believe Cumulus is capable of delivering," said Mary Berner, the company's president and CEO. "However, as we have noted consistently, the debt overhang left by previous years of underperformance remains a significant financial challenge that we must overcome for our operational turnaround to proceed."
Cumulus reaches 245 million people each week through its 446 owned-and-operated stations broadcasting in 90 U.S. media markets.
IHeartMedia is the largest owner of U.S. radio stations. It has been struggling to address its debt load outside of bankruptcy court.