A federal bankruptcy judge has confirmed Cumulus Media’s prepackaged Chapter 11 plan, allowing the Atlanta-based radio company to restructure approximately $660 million in debt, wipe out existing shareholders, and emerge as a privately held company with CEO Mary Berner staying in her role.
U.S. Bankruptcy Judge Alfredo R. Pérez in the Southern District of Texas (Houston) signed the confirmation order on Wednesday.
The swift approval came less than six weeks after Cumulus filed for bankruptcy protection, reflecting strong pre-filing support from creditors.
Under the plan, the majority of Cumulus’s secured debt will convert to equity:
- Holders of the 2029 secured claims (approximately $168.6 million) will receive 95% of the reorganized company’s new common stock plus $50 million in exit convertible notes.
- Holders of other funded debt claims — including 2026 notes, 2026 term loans, and 2029 deficiency claims (totaling roughly $494.5 million) — will receive the remaining 5% of new equity.
- Existing shareholders will receive nothing.
Additional provisions include:
- SoundExchange receiving carve-outs that preserve its statutory royalty audit rights for 2017–2022, with limitation periods tolled during the bankruptcy.
- Assumption without modification of the NFL’s audio rights agreement with Westwood One.
- Amended employment agreements for the current CEO and CFO, who will remain in their positions.
- A new board of directors, selected by the 2029 secured claim holders, to take control on the effective date.
Once complete, Cumulus will operate as a private company, with its new securities exempt from Securities Act registration requirements.