The Federal Communications Commission has approved Cumulus Media’s reorganization following its Chapter 11 filing earlier this year.
As part of Cumulus’ appeal, President and CEO Mary Berner wrote to FCC Chairman Brendan Carr last week and pledged that the company will maintain existing newsroom staffing levels for at least two years.
The commission approved Cumulus’ application Monday, according to filings in the FCC’s LMS database. It was the last remaining major obstacle in the media company’s plan to exit from bankruptcy proceedings as it seeks to eliminate approximately $600 million in debt.
On Aug. 14, Berner wrote to Carr in a letter included with the company’s transfer application.
Berner said that emerging from Chapter 11 on stronger financial footing will allow Cumulus to preserve and strengthen, “not diminish,” its ability to serve local communities.
(Read Cumulus President and CEO Mary Berner’s commitment letter to FCC Chair Brendan Carr.)
“Unlike national platforms or algorithmically curated news feeds, Cumulus Media’s employees are positioned to provide broad-based, free, over-the-air news and information closely tuned and responsive to immediate local conditions,” she wrote.
“Consistent with that objective, we commit to maintaining our existing newsroom staffing levels for a minimum of two years following approval of the requested applications,” Berner continued.
She also pointed to the many Cumulus stations that serve as Primary Entry Points in the Emergency Alert System as part of FEMA’s National Public Warning System.
“Cumulus Media recognizes the special responsibilities associated with these facilities and remains committed to supporting their operational readiness, technical compliance and coordination with federal, state and local emergency management partners,” Berner wrote.
Berner said that Cumulus stations have raised around $123 million over the past three years for local charities.
“Our stations serve local listeners, support local journalism, provide critical emergency information, amplify community needs and help strengthen civic life in markets across the country,” she wrote. “We view this work not as ancillary to our business but as central to our responsibilities as a broadcast licensee.”
Berner stated in her letter that the company has operated business as usual throughout the process. The company initiated multi-week nationwide employee layoffs earlier in August, as RadioInsight reported.
But with FCC approval secured, Cumulus awaits the execution of its restructuring agreement and the occurrence of the plan’s “effective date.”
Cumulus filed for prepackaged bankruptcy protection in April, and a U.S. bankruptcy court quickly approved the plan.
Court documents from the U.S. Bankruptcy Court for the Southern District of Texas in April showed that upon exiting reorganization, signed lenders will hold 95% control of the company alongside a new board of directors. The company is also seeking to shed several tower sites and studio facilities as part of the process, including the tower site for KSFO(AM) in San Francisco, whose license Cumulus surrendered to the FCC earlier this month.
This marks the second time in less than nine years that the third-largest commercial U.S. radio group by revenue filed for Chapter 11. Cumulus owns 384 stations across 84 U.S. markets.
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