It looks like it will be a swift trip through bankruptcy for Cumulus Media now that a judge has certified the company’s restructuring plan.
Cumulus now only needs to secure Federal Communications Commission approval to emerge from bankruptcy.
The media company completed its first crucial step in the process Wednesday when U.S. Bankruptcy Judge Alfredo Perez during a court hearing Wednesday in Houston certified the broadcaster’s plan to go private with its former debt holders turning their holdings into equity in the new entity.
It will emerge bankruptcy with a stronger foundation, the company said, by shedding approximately $600 million in debt.
The company, which also owns Westwood One and the Cumulus Podcast Network, previously went through a Chapter 11 process in 2017-18.
With court authorization secured, Cumulus said it expects to emerge from Chapter 11 following FCC approval. The company didn’t give a timeline for gaining that approval.
The company said on Wednesday that it continues to operate its business as usual throughout the bankruptcy process.
“When we initiated this prepackaged restructuring in March, we did so with a clear objective: to right-size our balance sheet to support long-term success,” said Mary Berner, president and CEO of Cumulus Media.
Berner in a press release said the court’s prompt approval of its reorganization plan positions Cumulus to emerge as a “well-capitalized company, better equipped to compete in the evolving audio landscape.”
The hearing in U.S. Bankruptcy Court for the Southern District of Texas included a declaration from CFO Frank Lopez-Balboa in support of confirmation of the prepackaged Chapter 11.
Lopez-Balboa and CEO Berner are expected to remain with the company at least through the end of this year.
Previously released bankruptcy court documents showed that nearly 85% of debt holders signed off on the restructuring. The new Cumulus also can carve out additional savings of about $50 million in annual interest costs, according to court documents.
With today’s victory, Cumulus can now begin executing its restructuring plan and pushing for FCC approval. The broadcaster has indicated in court filings it could emerge from Chapter 11 as soon as next month.
The Atlanta-based Cumulus, which has 393 owned-and-operated radio stations across 84 markets, reported having a total of 2,862 employees, 2,078 of whom were employed full-time, at the end of 2025.
[Related: “For Cumulus, Financial Losses Were Mounting Before Its Chapter 11 Filing”]
