ATLANTA, GA (CelebrityAccess) — U.S. radio conglomerate Cumulus Media Inc. filed for Chapter 11 bankruptcy protection on Wednesday and said it had struck a deal with creditors to restructure more than $1 billion in debt.
"Cumulus expects all operations, programming, and sales to continue as normal throughout this restructuring process. The Company has ample cash on hand, combined with funds generated from ongoing operations, to support the business during the financial restructuring process," the company said in a note to investors.
Mary Berner, President, and Chief Executive Officer stated that the company's turnaround efforts have been successful but noted that the restructuring was required to address growing debt.
“Over the last two years, we have focused on implementing a business turnaround to reverse the Company’s multi-year ratings, revenue and EBITDA declines, create a culture that fosters motivated and engaged employees, and build an operational foundation to support the kind of performance we believe Cumulus is capable of delivering," Berner wrote.
"As we have demonstrated in many measurable ways – including increased ratings, revenue market share gains, improved employee satisfaction, reduced employee turnover and, over the last several quarters, our return to year-over-year EBITDA and revenue growth – that turnaround has not only been successful but is continuing. However, as we have noted consistently, the debt overhang left by previous years of underperformance remains a significant financial challenge that we must overcome for our operational turnaround to proceed,” she added.
Cumulus includes 446 owned-and-operated stations broadcasting in 90 US media markets and approximately 8,000 broadcast radio stations affiliated with its Westwood One network and numerous digital channels.