Judge Grants Cumulus More Time To Complete Bankruptcy.

Cumulus Media has received court approval to extend its exclusive rights under Chapter 11 as the broadcaster continues to wait for the Federal Communications Commission to sign off on the ownership changes required to complete its restructuring.

Bankruptcy Judge Alfredo Pérez on Friday granted Cumulus' request to extend the company's exclusive periods to file and solicit a Chapter 11 plan, giving the broadcaster until Oct. 30 to file a plan and Dec. 29 to solicit acceptances.

The ruling is largely procedural and reflects the timing of the FCC's review rather than any problems with the broadcast goup’s restructuring. By extending the exclusivity periods, Cumulus ensures no other party can attempt to propose a competing reorganization plan while the company waits for the FCC to complete its review.

The bankruptcy court confirmed the company's prepackaged reorganization plan in April. However, the plan cannot become effective until the FCC approves the ownership changes associated with the transaction.

In a motion filed earlier this month, Cumulus told the court that it was in a holding pattern while FCC reviews its reorganization application. While Cumulus has been working with its stakeholders to submit the FCC application, the company acknowledged that the timing of the agency's review is "in significant part, outside of the debtors' control.”

Cumulus said it was seeking the extension "out of an abundance of caution and to preserve the status quo and the broad consensus embodied in the confirmed plan." The company said the additional time will provide "continued stability and predictability" while avoiding "the potential distraction and confusion that would result from the filing of a competing plan by another party." Cumulus also argued creditors would not be harmed because the restructuring plan has already been confirmed and enjoys broad stakeholder support.

Judge Pérez's order adopts the relief requested by Cumulus, extending both exclusivity periods while leaving open the possibility of additional extensions if circumstances warrant.

Since entering Chapter 11 on March 4, the company has moved through the court process at an unusually fast pace. Bankruptcy Judge Alfredo Pérez confirmed Cumulus' prepackaged restructuring plan on April 15, approving a deal that eliminates roughly $592 million in debt, reduces annual cash interest expense by about $49 million, and transfers ownership of the broadcaster to its lenders. CEO Mary Berner and CFO Francisco Lopez-Balboa have also inked new employment agreements that will keep them in place at least through at least the end of the year.