Cumulus Bankruptcy Enters FCC Phase.

The Federal Communications Commission’s review of Cumulus Media’s chapter 11 reorganization is getting underway as a parallel bankruptcy court process also moves forward. The FCC process began this week with an application filed the company with the agency. But unlike its previous reorganization in 2018, this FCC evaluation is expected to be far less complicated as the ownership structure, offices and directors, and debtholders will remain unchanged. The arrangement will instead make lenders holders of equity in the company.

Unlike some radio bankruptcies, the latest reorganization will also not require any station divestitures to meet current ownership limits. But the creditors will need to certify that their holdings will not create over-the-limit combinations with other media properties they already own. Cumulus has indicated that creditors receiving equity in the reorganized company may initially be limited to holding no more than 4.99% of the new voting stock unless the FCC approves their ownership stake.

Cumulus filed a Chapter 11 reorganization plan earlier this month that will eliminate roughly $592 million of debt and reduce annual cash interest costs by about $49 million. Lenders have also agreed to provide up to $100 million to support operations during and after the restructuring process.

“The debtors anticipate that they will continue business operations substantially in the ordinary course throughout the chapter 11 process.” Cumulus tells the FCC in the filing.

The company has said in court filings that it expects to provide the FCC with detailed ownership disclosures. Helping to speed the review process will be a 2020 ruling by the Commission which said Cumulus could be up to 100% foreign owned as part of its earlier bankruptcy reorganization. Court filings show the company also intends to request a limited waiver, which would allow it to emerge from chapter 11 without waiting for the FCC to complete its review of a new foreign ownership petition.

Who’s Owed What

Cumulus Media’s chapter 11 petition says the company had total debt of $1.14 billion with assets totaling $1.08 billion. The creditor list tells a familiar chapter 11 story: a capital structure dominated by institutional debt, followed by a long tail of industry vendors and operating partners. At the very top sit the secured lenders — Bank of America, acting as administrative agent on the 2029 term loan, with roughly $236 million in unsecured exposure, and U.S. Bank Trust Company, as trustee for the company’s first-lien notes, with another $234 million. Together with a smaller $23 million claim tied to the 2026 senior notes, those three positions alone account for the overwhelming majority of the dollars at stake.

From there, the list quickly shifts from balance-sheet financing to the day-to-day costs of running a radio company. Music licensing organizations—BMI, ASCAP, and Global Music Rights—collectively are owned just over $6 million dollars in unpaid or disputed fees. Ratings provider Nielsen Audio also appears near the top with a disputed claim approaching $3.8 million.

Meanwhile, a cross-section of media and advertising ecosystem players also shows up on the creditor list. Beasley Media Group ($568,282) carries the largest exposure among peers, followed by Cox Media Group ($397,979) and Audacy ($375,000). Smaller but still notable claims come from Benztown ($265,596) and iHeartMedia ($228,312), while Katz Media Group ($142,875) rounds out the group—collectively totaling just under $2 million in unsecured obligations.

Further down the list, the claims become smaller and include digital vendors, consultants, landlords, and local partners such as Infinite Digital, Orbit Interactive, Bridge Marketing, and the Port of San Francisco.