In December, Cumulus offered to swap up to 14.6 million shares of its stock for $610 million of its debt. The deadline for the stock-for-debt offer is March 13. The deal amounts to pennies on the dollar, since Cumulus’ shares are trading around $1 lately.
If the exchange doesn’t work, Cumulus warned in a Dec. 27 filing, “we may be required to seek protection from our creditors through a bankruptcy filing. If so, the expenses of any such filing would reduce the assets available for payment or distribution to our creditors and, if applicable, stockholders.”
Wednesday, for the second time, Cumulus extended an “early tender” deadline, which offers a cash premium for investors who agree by the early deadline to swap their debt for stock. The deadline has now been pushed back to Feb. 13, from Dec. 23 originally.
In late December, Cumulus also said it paid off a portion off $28.7 million of debt at a 30 percent discount. The retired debt was a small portion of its $1.8 billion in debt secured by the company’s assets.
Meanwhile Cumulus shares have continued to languish. The company’s stock price has declined more than 98 percent since mid-2014. Cumulus stock closed just under $1 a share Friday afternoon, down more than 5 percent.