Cumulus Media Inc. today announced that it has entered into a comprehensive restructuring support agreement with a group of its lenders to eliminate approximately $600 million of debt, substantially deleveraging its balance sheet and enhancing its ability to execute on strategic priorities.
The Company will continue operating in the ordinary course throughout the process, with no impact to employees, partners, or listeners.
“While we have outperformed the market on many of our most important metrics, including share gains in both local and digital revenue, the broader macroeconomic and industry-wide pressures we have faced have remained unrelenting,” said Mary G. Berner, President and Chief Executive Officer of Cumulus Media. “Against that backdrop, it became clear that Cumulus’s remaining debt burden limited our ability to fully realize the Company’s potential, and this agreement represents a major step forward.”
To implement the Agreement, Cumulus and certain of its subsidiaries commenced prepackaged Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas (the “Court”) on March 5, 2026. In conjunction with the Chapter 11 petitions, Cumulus has filed a proposed Plan of Reorganization that incorporates the terms of the RSA and is subject to approval by the Court. The requisite majority of debtholders committed to vote in favor of the Plan, which calls for the cancellation of 100% of the Company’s existing funded indebtedness in exchange for 100% of the Company’s reorganized equity and $50 million of new convertible notes, as well as the amendment and restatement of the Company’s asset-based revolving credit facility to provide continued liquidity.
- Prepackaged plan: Cumulus entered a restructuring support agreement (RSA) with a group of its lenders (holding the requisite majority to support the plan). It simultaneously filed a proposed Plan of Reorganization that incorporates the RSA terms.
- Debt elimination: 100% of existing funded indebtedness (including roughly $673 million in term debt maturing in 2029 and about $59 million drawn on its $125 million asset-based revolving credit facility) will be cancelled.
- What creditors get: In exchange, they receive 100% of the reorganized company’s equity plus $50 million in new convertible notes.
- Liquidity preserved: The existing asset-based lending (ABL) facility will be amended and restated to maintain ongoing liquidity and working capital.
- Timeline: The company expects a court hearing on plan confirmation within about 60 days. Full emergence from bankruptcy will follow required regulatory approvals, primarily from the Federal Communications Commission (FCC) due to its radio station licenses.
- No operational disruption: Radio stations, programming (including Westwood One syndication), podcasts, employees, advertisers, and listeners will be unaffected. The company will run in the ordinary course throughout the process.