Cumulus Media Inc. recently started talks with two separate groups of creditors who own big chunks of the company’s $2.4 billion in debt, according to people familiar with the matter. The radio broadcaster faces key deadlines when most of its debt matures in early 2019.
The Wall Street Jounral reports the talks could lead to a bankruptcy filing, according to people familiar with the matter.
Cumulus, the second-biggest radio broadcaster in the U.S. by revenue, has been grappling with how to restructure its debt load for a couple of years as advertising revenue and audience numbers have slid.Cumulus is holding talks with a group of holders of its $1.8 billion in term loans as well as with a group of bondholders.
While Cumulus and its advisers are in talks with lenders and bondholders, the situation remains fluid and an out-of-court debt restructuring remains possible, the people added.
Cumulus’s financial performance has improved lately, with the company reporting higher revenue and earnings before interest, taxes, depreciation and amortization for the first time in years. In the second quarter, Cumulus reported a 6.7% increase in Ebitda and a 1.2% increase in revenue. By contrast, in 2016, the company’s revenue fell 2.3% to $1.4 billion and its Ebitda fell 20.6% to $205 million.
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