Wednesday, February 7, 2018

Report: Cumulus Pays Nielsen, But Owes For Equipment

Several familiar broadcast equipment suppliers are prominent on the list of top 20 unsecured creditors of Cumulus Media as it continues down the path of court-supervised reorganization.

According to RadioWorld, equipment dealer Broadcasters General Store is likely bracing for a hit since they have the third largest amount due on the list. A bank occupies the top slot.

Cumulus owes BGS about $967,000, according to documents filed in the Chapter 11 reorganization. The document shows the total of unsecured debt at the time of Cumulus’ voluntary filing late last November. The list of unsecured claims at the time also included royalties collector BMI at about $790,000.

Another familiar equipment supplier on the unsecured party list is GatesAir Inc., which is owed $45,596. Other suppliers and vendors who have filed claims include 305 Broadcast LLC and WideOrbit. Even fellow broadcasters like iHeartMedia and Cox Media have filed financial claims.

Cumulus owed Nielsen $6.6 million at the time of the voluntary filing last year but later made a specific motion request in U.S. Bankruptcy Court in the Southern District of New York to continue the Nielsen contract, according to those familiar with developments. As a result Cumulus paid Nielsen in full and the contract is now in good standing.

Cumulus, which was $2.4 billion in debt at the time of its Chapter 11 filing last year, has a critical meeting of creditors on Feb. 27 as part of its court-supervised proceeding.

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