Cumulus Emerges From Bankruptcy
18 months after it went into bankruptcy Cumulus has now emerged as a new public company. At its peak Cumulus owned 505 radio stations in the US. That number has trimmed down a bit to 445 stations, which still keeps Cumulus 2.0 as the second largest broadcaster in the US – at least in terms of station count. During the bankruptcy process Cumulus’s debt was reduced from $2B to $1.3B, so they still owe a decent chunk of change. In return for $700M in debt relief its secured creditors now own 83% of the new company.
To Cumulus’s credit they’ve managed to keep their core operational structure intact throughout the process, so they won’t need to reinvent the company all over again. In its Q1 earnings call Cumulus reported flat revenue YoY and a $5M net loss, so they’re effectively treading water right now. It’ll be interesting to see if CEO Mary Berner and team embark on any new growth strategies now that the bankruptcy handcuffs have been taken off. We shall see . . .