-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
Cumulus files for bankruptcy again
- Thread starter BoboKnight
- Start date
Do they have to put the "change of ownership notices" on the air? That could be rather lengthy. I personally believe that should be on a website and the station sits instructions on the how to reach the site
Maybe Connoisseur will buy Cumulus, and put them out of their misery.
As station valuations have dropped, nearly all broadcast groups have been hamstrung by their debt service. Wouldn't removing the debt be a good thing? Since coming out of the previous bankruptcy in 2018, Cumulus has cut their debt from near $1 billion to $600 million. Now they'll have a stronger financial footing to either grow or sell out.
So in a nutshell this is one of those “the creditors will now own the company” scenarios?
Of course it's good to get rid of debt. I'm not sure continual reorganizations are the best path though. Maybe looking back they should have taken more unprofitable stations silent sooner? Just a thought from an admitted armchair quarterback. Cumulus stock is currently trading at 1.5 cents.
The issue is not "unprofitable stations". It is debt that today's profitable operations is too much to pay with stagnant or declining station profits.
They already do. Converting 100% of debt into 100% of equity.
Cumulus Media Enters Prepackaged Chapter 11 Bankruptcy Agreement To Eliminate $600 Million In Debt
Cumulus Media has announced it has agreed to a pre-packaged Chapter 11 bankruptcy restructuring with a group of its lenders
radioinsight.com
Under the restructure, the new company will be private, so no more stock. Similar to the Audacy deal.
Cumulus had an adjusted operating loss of $10,171,000 the first 9 months of 2025 after backing out restructuring expenses, gain/loss on station/asset sales, and impairment. The operating loss was before interest expense.
IMHO They are finally doing the only thing logical option by the converting debt to ownership. It is the only way out.
My friend a retired small bank president said once said "we only use assets for collateral we would like to own".
My friend a retired small bank president said once said "we only use assets for collateral we would like to own".
Yes, exactly that.
So, if you're a creditor, instead of being paid back by the turd, you now own the turd. No wonder my Granny kept her investment money in a jar in the basement.
Funny, I don't remember my Economics 101 professor going over this on the syllabus...the turd part, that is. Of course, back in the day, we bought what we could pay for. Hmm.
Funny, I don't remember my Economics 101 professor going over this on the syllabus...the turd part, that is. Of course, back in the day, we bought what we could pay for. Hmm.
I remember many moons ago when a station I was working at was bought by Cox. The post-filing announcement seemed to consist of the entire Atlanta phone book
The only positive (depending on your point of view) out of this whole deal is now private equity/ Wall Street and quick buck speculators will look at radio stations and their on line assets only for existing cash flows. They will have to pay attention to the business just like the successful small market operators always have done. There is no bigger fool that's going to come along and bale them out if they overpaid for the assets.
If you are a Cumulus employee with company stock in your portfolio I realize you reaction can't be posted without a few !@_&E-@$_ !! words.
If you are a Cumulus employee with company stock in your portfolio I realize you reaction can't be posted without a few !@_&E-@$_ !! words.
If Tennessee Ernie Ford wrote '16 Tons' about a radio station today, it would be "I owe my soul to Hedgehog Investments, PocketRocket Equity, Ralph's Bank and Trust, Sylvia's Wig Emporium and Power Company, etc., etc,. ..."
It was up to investment companies to approve or reject the loan. They agreed to loan Cumulus this money. Now they're stuck with a bunch of towers and transmitters.
What employee in their right mind would put Cumulus stock in their portfolio?
Not really, I believe they sold most of their towers and land like iHeart did.
IMHO all they really "own" is FCC licenses, Cumulus's digital assets and programming. It wouldn't surprise me if they are leasing their newer transmitters. *
* I one time entertained the thought of setting up a leasing company for transmitters. I sobered up.
The lenders now own the leases to those towers and transmitters,