Cumulus, Owner of 93X, 92 KQRS and 105 The Vibe, Files for Bankruptcy Protection
Cumulus Media, the owner of three FM radio stations in the Twin Cities area, filed for Chapter 11 bankruptcy yesterday as it seeks to restructure more than $2.4 billion in debt.
Cumulus, which owns KQRS-FM/92.5 (Minnesota's Classic Rock), KXXR/93.7 (93X) and WGVX/105.1 (105 The Vibe), has reached an agreement with 69% of its term loan holders to reduce its debt by more than $1 billion, according to a press release.
Court documents show that Cumulus largest lender is US Bank, who is owed about $6.37 million in cash. The rest comes in the form of trade debt owed to over a dozen companies, including Nielsen, CNN, and Live Nation.
While the Cumulus defaulted on a $23.6 million loan payment earlier this month, its statement maintains that it has “ample cash on hand” and ”expects all operations, programming and sales to continue as normal throughout this restructuring process.”
CEO Mary Berner said that the company is in the middle of turnaround which has shown promising results in terms of ratings, revenue and employee retention, but its debt burden still had to be addressed.
“The debt overhang left by previous years of underperformance remains a significant financial challenge that we must overcome for our operational turnaround to proceed,” she said.
Cumulus Media owns and operators 446 stations nationwide in 90 markets, as well as Westwood One, a national radio syndication platform. It's most direct competitor, iHeartMedia, is also struggling with a large financial burden to the tune of $20 billion.