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Thread: Cumulus Media files for bankruptcy

  1. #1
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    Cumulus Media files for bankruptcy

    Radio giant Cumulus files for bankruptcy
    Variety, Nov 29 2017 6:09 PM

    Atlanta-based radio giant Cumulus Media has filed to reorganize in Chapter 11 bankruptcy, with $2.4 billion in debt. It has reached an agreement with 69% of its term loan holders. Cumulus’ restructuring agreement with lenders will reduce the company’s debt by more than $1 billion. The filing took place at United States Bankruptcy Court for the Southern District of New York.

    Earlier this month, Cumulus defaulted on a nearly $24 million debt payment to its lenders. The stock will continue to trade on the OTC market, where it moved after being delisted at NASDAQ last week. The company will also cease paying interest on bonds or interest that will accrue on bonds during its financial restructuring process, according to a post on the company website.

    Cumulus Media owns and operates 446 radio stations in 90 U.S. media markets, including such venerable outlets as news/talk KABC and classic rock mainstay KLOS in Los Angeles, triple-A giant KFOG and rock station KSAN in San Francisco, along with talker WABC and hot AC WPLJ in New York. Cumulus expects all operations, programming and sales to continue as normal throughout the restructuring, insisting it has enough money on hand along with continuing revenue to keep the doors open. Cumulus president/CEO Mary Berner insists the company will turn its fortunes around.

    http://variety.com/2017/music/news/r...11-1202626609/
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    Cumulus Media opened today -- November 30, 2017 -- at 13½ cents per share and fell as low as 4.11 cents before closing at 9 cents. Earnings per share is $18.59. Oh, pardon me -- make that minus $18.59. Cumulus stock has dropped 91.5% in the past year. Yikes!

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    Today, December 1, Cumulus shares gained a ha'penny -- to use an old British expression -- and closed at 9½ cents. Here are more details of the bankruptcy filing:

    Cumulus Media petitions to lower debt in bankruptcy filing

    http://www.nypost.com/2017/12/01/cum...ruptcy-filing/

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    Cumulus has some company. (No pun intended.) The owners of iHeartMedia have been trying to avoid bankruptcy by refinancing $15 billion in debt and now they're getting desperate:

    iHeartMedia owners willing to give up vast majority of the company

    http://www.variety.com/2017/biz/news...er-1202627967/

  5. #5
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    The FCC wants to get rid of limits on how many radio stations and newspapers a company can own. I think that is a bad idea. Some of these companies own hundreds of stations and they're losing money because so many people are ditching radio for satellite and online channels and iPods. I think these big companies should start selling their stations to individual owners. Radio will be better if all the stations aren't owned by a few big companies.

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    I think another big problem with radio is that there are a lot of big talk shows that are heard on hundreds of different stations. Talk stations should have local hosts talking about local issues. Then more people would listen. I also notice that talk show hosts hardly ever talk with listeners anymore. I wish that would change. They sound like they're just giving a lecture.

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    With restructuring, Cumulus should be able to pay its debt and have money left over -- but it seems the banks have other ideas.

    Cumulus Media's restructuring proposal unfairly favors banks: An analysis by Distressed Debt 1 LP Hedge Fund

    https://seekingalpha.com/article/412...ssed-debt-1-lp

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    Nielsen Audio conducts continuous research into listenership of AM, FM, streaming and podcasts in 294 metropolitan areas. The ratings, broken down by sex, age group, daypart and other factors, are released every four weeks to subscribing stations. Advertising rates are based largely on those ratings. Cumulus owed Nielsen more than $6,000,000. Despite the bankruptcy filing, Cumulus and Nielsen just entered into a "long-term relationship." Apparently Cumulus found the money to pay Nielsen.

    Despite Chapter 11, Cumulus extends deal with Nielsen

    https://radioink.com/2017/12/10/desp...-signs-cumulus

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    Cumulus Media, in the midst of a bankruptcy reorganization, got permission from a bankruptcy court to nullify several unprofitable contracts. One of those was a six-year deal to broadcast White Sox baseball on WLS. The upcoming season would have been the third year. Instead, the games will now be heard on WGN. Ed Farmer and Darrin Jackson will continue to do play-by-play.

    WGN 720 is the new radio home of the White Sox

    http://www.chicagotribune.com/sports...214-story.html

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    Things like this did not happen in the 1950s when there were no huge corporations owning hundreds of radio stations. "Local radio. Local announcers. Local news. Local sports. Local programs." What a concept!

    The Cumulus bankruptcy: CNBC, Westwood agree on new terms
    Inside Radio, Feb 20 2018

    As its Chapter 11 financial reorganization continues to works its way through U.S. Bankruptcy Court in New York, Cumulus Media has reached an agreement with another one of its creditors. CNBC has agreed to amend its long-running content distribution agreement with Westwood One. The deal dates back to February 2003. The revised agreement still needs the court’s approval. Hoping to keep specific terms private, Cumulus filed a redacted copy of the amended agreement with the court on February 16, with "commercially sensitive information" blacked out. The amended deal spells out a new revenue share arrangement with CNBC for billings Westwood One collects from ad sales or cash payments for the CNBC shows it carries.

    http://www.insideradio.com/free/the-...4c672df3a.html

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