Cumulus Media Gets Bankruptcy Extension

Cumulus Media has received court approval to extend its exclusive Chapter 11 plan rights while it waits for FCC approval of required ownership changes to complete its restructuring.

Bankruptcy Judge Alfredo Pérez granted the request Friday, giving the broadcaster until Oct. 30 to file a plan and Dec. 29 to solicit acceptances. The extension is largely procedural and stems from the timing of the FCC’s review rather than any issues with Cumulus’ restructuring. It prevents other parties from proposing competing reorganization plans during the wait.

The bankruptcy court confirmed Cumulus’ prepackaged reorganization plan in April, but the plan cannot take effect until the FCC approves the associated ownership changes. In a motion filed earlier this month, the company said it remains in a holding pattern while the agency reviews its application. 

Cumulus noted that the timing of the FCC review is “in significant part, outside of the debtors’ control.”

The company sought the extension “out of an abundance of caution and to preserve the status quo and the broad consensus embodied in the confirmed plan.” It argued the extra time would provide “continued stability and predictability” and avoid “the potential distraction and confusion that would result from the filing of a competing plan by another party.” 

Creditors would not be harmed, Cumulus said, because the plan already has court confirmation and broad stakeholder support.