Cumulus' Reorgnization Plan Draws Trustee Scrutiny

Bankrupt radio Cumulus Media Inc. should be required to revise language in its Chapter 11 plan solicitation materials to clear up concerns over broad third-party litigation releases and how creditors might avoid consent to those provisions, an attorney for the U.S. trustee said in a Monday court filing.

According to the filing by Trustee William Harrington, he's urging a New York bankruptcy judge to reject Cumulus’ so-called disclosure statement, which details the facets of the company’s Chapter 11 reorganization plan.

Harrington is seeking more info from Cumulus for creditors to make, "an informed choice," about approving the plan.