Cumulus Media files for Chapter 11 to restructure

June 2026 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

June 2026 Issue

Amid prolonged financial pressures facing the US radio industry, Cumulus Media has filed for Chapter 11 bankruptcy protection as part of a prepackaged restructuring designed to significantly reduce its debt burden. The filing marks the company’s second Chapter 11 process in less than a decade, following its previous court-supervised restructuring between 2017 and 2018.

The Chapter 11 petition, filed in the US Bankruptcy Court for the Southern District of Texas in early March 2026, enables Cumulus to implement a comprehensive restructuring support agreement (RSA) with a group of its key lenders. Under the agreement, the company will eliminate approximately $600m of funded debt, substantially deleveraging its balance sheet and reducing annual interest costs.

In conjunction with the filing, Cumulus submitted a proposed plan of reorganisation that incorporates the terms of the RSA. The plan, which has been approved by an overwhelming majority of debtholders, was confirmed by the bankruptcy court in April 2026. It provides for the cancellation of existing funded indebtedness in exchange for ownership of the reorganised company, alongside the issuance of $50m in new convertible notes and the amendment and restatement of the company’s asset-based revolving credit facility to maintain liquidity.

Under the confirmed plan, existing shareholders will receive no recovery, and control of the business will transfer to creditor groups. On emergence, Cumulus will operate as a privately held company. Completion of the restructuring remains subject to regulatory consent, with the company awaiting approval from the Federal Communications Commission for the transfer of control of its broadcast licences.

Throughout the Chapter 11 process, Cumulus has continued to operate in the ordinary course of business. The company has stated that the restructuring has had no impact on employees, partners or listeners, a point it has repeatedly emphasised in court filings and public statements.

“While we have outperformed the market on many of our most important metrics, including share gains in both local and digital revenue, the broader macroeconomic and industry-wide pressures we have faced have remained unrelenting,” said Mary G. Berner, president and chief executive of Cumulus Media. “Against that backdrop, it became clear that Cumulus’s remaining debt burden limited our ability to fully realise the company’s potential, and this agreement represents a major step forward.”

Cumulus describes itself as an audio-first media company delivering premium content to approximately a quarter of a billion people each month. It operates 394 owned and operated radio stations across 84 US markets, alongside nationally syndicated sports, news, talk and entertainment programming, including the Westwood One network.

Through a network of more than 7800 affiliated stations, the company offers advertisers local engagement and national scale across broadcast and digital platforms, including streaming, mobile, social and voice-activated channels. Its services also encompass digital marketing, live events and audience research.

Cumulus is one of several radio broadcasters to seek Chapter 11 protection in recent years amid structural shifts in audio consumption. Audacy, Inc. filed for bankruptcy protection in January 2024, while High Plains Radio Network, LLC followed in March 2024. The sector has struggled with declining traditional radio audiences as listeners increasingly turn to podcasts and streaming services for on-demand content.

“The Chapter 11 process is intended to address the company’s debt efficiently with no disruption to our operations, our people and our strategies,” said Ms Berner. “On emergence, a stronger financial foundation will better position Cumulus to continue investing in premium content, enriched audience experiences, advertiser performance enhancements and the ongoing growth of our digital marketing offerings.”

The outcome underscores accelerating consolidation pressures within terrestrial broadcasting, highlighting how balance sheet repair has become central to survival strategies as advertising volatility and digital competition continue reshaping industry economics.

Fraser Tennant