Owner of 93Q and 95X Files for Bankruptcy

SYRACUSE — Cumulus Media, the owner of Syracuse radio stations 93Q (WNTQ), 95X (WAQX) and The Score 1260 (WSKO) has filed for Chapter 11 bankruptcy in an effort to eliminate “approximately $600 million of debt.”

In a press release issued today, Cumulus claims “The Company will continue operating in the ordinary course throughout the process, with no impact to employees, partners, or listeners.”

For those not familiar, Chapter 11 is filed by companies attempting to “restructure” debt, as opposed to Chapter 7 bankruptcy, where a company is dissolving.

Cumulus describes this as a “prepackaged” Chapter 11 filing, stating a “majority of debtholders committed to vote in favor of the Plan.” Securing creditor approval in advance of the filing typically makes it easier for the deal to win the approval of the United States Bankruptcy Court and the FCC.

When it’s all said and done, Cumulus says this will result in “the cancellation of 100% of the Company’s existing funded indebtedness in exchange for 100% of the Company’s reorganized equity and $50 million of new convertible notes.” The deal will also result in “the amendment and restatement of the Company’s asset-based revolving credit facility to provide continued liquidity.”

Cumulus President and CEO Mary Berner said in the statement, “The prepackaged process is intended to address the Company’s debt efficiently with no disruption to our operations, our people, and our strategies. On emergence, a stronger financial foundation will better position Cumulus to continue investing in premium content, enriched audience experiences, advertiser performance enhancements, and the ongoing growth of our digital marketing offerings.”

Cumulus has launched a full website with more details at https://www.cumulus.com/restructuring

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