Owner of two D.C.-area radio stations files for Chapter 11 bankruptcy

Cumulus Media reached a restructuring agreement with a group of lenders that will eliminate substantially all of the company’s remaining debt, reducing its obligations by about $600 million and positioning the broadcaster for a stronger financial future as a privately owned company, reports Inside Radio.

Cumulus Media operates two stations in the D.C. market: WMAL-FM (105.9 FM) and sports station WSBN-AM (ESPN 630 DC). Based in D.C., these stations serve the metro area, with WSBN also acting as the Washington-area radio home for Baltimore Orioles baseball.

An online item states the company’s primary footprint in the region “is focused on the D.C. market rather than owning stations directly within the Baltimore city limits, though it connects to Baltimore sports via its D.C. radio properties.

Inside Radio reports that the Atlanta-based company “said it has entered into a restructuring support agreement with debtholders that will be implemented through a prepackaged Chapter 11 process designed to move quickly and avoid disruption to daily operations

“Under the plan, Cumulus and certain subsidiaries filed voluntary petitions on March 5 in the U.S. Bankruptcy Court for the Southern District of Texas. The company simultaneously submitted a proposed reorganization plan reflecting the terms of the agreement.

“The restructuring plan calls for the cancellation of all existing funded debt in exchange for ownership of the reorganized company, taking the publicly traded company private. Lenders would receive 100% of the new equity along with $50 million in new convertible notes. The agreement also includes amendments to the company’s asset-based revolving credit facility intended to provide continued liquidity after the restructuring.”

This is the second time the company entered Chapter 11, having previously filed in November 2017.