CUMULUS CONTINUING NORMAL OPERATIONS DURING FINANCIAL RESTRUCTURING
In conjunction with our ongoing turnaround efforts, Cumulus has entered into an agreement with certain of our secured lenders on the terms of a financial restructuring plan that will reduce our debt by more than $1 billion. In order to implement the terms of this agreement, the Company chose to voluntarily file for reorganization under Chapter 11 of the U.S. Bankruptcy Code on November 29, 2017.

Operations, programming, and sales across the company, including our collection of stations and Westwood One, are continuing as normal.
We have already made significant progress in our turnaround efforts and are confident that our financial restructuring process will enable us to move forward as a stronger company.

For more information about the financial restructuring, please refer to the links below.

INFORMATION AND RESOURCES

FREQUENTLY ASKED QUESTIONS

General (10)
  • The Company entered into an agreement with a group of the Company’s secured lenders on the terms of a financial restructuring that will reduce Cumulus’s excessive debt load by more than $1 billion.
  • In order to implement this agreement, the Company chose to file for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code.
  • This is an important and positive step forward for Cumulus. Our operations are strong and, as demonstrated by our solid earnings performance these past few quarters, our business plan is working and on track.
  • Importantly, our operations and programming across our company will continue as normal.
  • We are using the court-supervised Chapter 11 restructuring process to remove the Company’s financial constraints, which will allow us to focus more of our resources on investments in our business.
  • Chapter 11 is a section of the U.S. Bankruptcy Code that allows companies to implement financial restructurings through a court-supervised proceeding while continuing to operate their businesses in the ordinary course.
  • We have made clear progress implementing our business turnaround and we are demonstrating that our turnaround has not only been successful, but is gaining momentum.
  • While our operational initiatives are gaining traction, we are now taking action to address our excessive debt load.
  • When completed, this financial restructuring will provide us the flexibility we need to make investments in our business that will strengthen our competitiveness and drive growth.
  • Our operations are strong and programming and sales are continuing as normal across our family of stations and Westwood One affiliates.
  • We have ample cash to run our business throughout the financial restructuring process.
  • Operations, programming and sales across our company, including our collection of stations and Westwood One affiliates, are continuing as normal.
  • We have ample cash to run our business throughout the financial restructuring process.
  • The Company will continue to be laser-focused on executing our strategies on ratings, culture, sales execution, and operational blocking and tackling as well as launching new initiatives to drive growth.
  • We look forward to being a stronger company when we complete this process.
  • We have ample cash to run our business throughout the financial restructuring process.
  • The Company has ample cash on hand, combined with funds generated from ongoing operations, to support the business during the financial restructuring process, and as a result, it does not intend to seek debtor-in-possession (DIP) financing.
  • Operations, programming and sales across our company, including our collection of stations and Westwood One affiliates, are continuing as normal. We have ample cash to run our business throughout the financial restructuring process.
  • The financial restructuring process will not result in selling or closing any stations outside of the ordinary course.
  • The current senior management team will remain in place and is strongly committed to leading the Company.
  • The Company expects to move through this court-supervised process as quickly and efficiently as possible.
Employees (1)
  • First and most importantly, we are (and will continue to be) open for business as usual! As we have been saying over the last several weeks, our operations are strong and programming and sales will continue as normal across our family of stations and Westwood One affiliates.
  • For further information, please see Mary’s post on FORCEBOOK, which includes FAQs for employees.
Advertisers / Agencies (4)
  • Cumulus’s operations, programming and sales across the Company, including its collection of stations and Westwood One affiliates, will continue as normal.
  • The Company will continue to work with its advertisers as normal.
  • As always, we value our relationship with you and your organization and look forward to continuing to work with you well into the future.
  • Cumulus’s operations, programming and sales across the Company, including its collection of stations and Westwood One affiliates, will continue as normal.
  • You can continue to reach out to your regular contacts.
  • Additional information and answers to frequently asked questions are available on Cumulus’s website at cumulus.com/restructuring or by calling Cumulus’s Restructuring Hotline, toll-free in the U.S. at 1-844-429-1668. (For calls originating outside of the U.S., please dial 1-503-597-5529.
Westwood One Affiliates (4)
  • Westwood One’s operations, programming and sales, including syndication of content and services to affiliates, will continue as normal.
  • We will work with affiliates as we always do.
  • Our affiliates are a critical part of business, and we will continue providing you with content and services with no interruption of service.
  • We value our partnerships with our affiliates and look forward to expanding our relationships in the future as we introduce new programming and exciting new innovations.
  • It is important to understand that this is a financial, not an operational, restructuring and Cumulus’s operations and programming are continuing as normal.
  • Cumulus fully expects to work with our affiliates as we always do. This means that Cumulus will continue providing affiliates with the content and services with no interruption of services.
  • Yes – it is imperative that you continue to honor your commitments to us as we will continue to honor our commitments to you.
  • Additional information and answers to frequently asked questions are available on Cumulus’s website at cumulus.com/restructuring or by calling Cumulus’s Restructuring Hotline, toll-free in the U.S. at 1-844-429-1668. (For calls originating outside of the U.S., please dial 1-503-597-5529.
Talent / Agents (1)
  • Operations, programming and sales across our company, including our collection of stations and Westwood One affiliates, are continuing as normal, and all appearances are expected to go on as scheduled. We have ample cash to run our business throughout the financial restructuring process.
  • We fully expect our relationship to continue and we intend to honor our agreement with you. We greatly value our relationship with you and your clients, and we look forward to continuing to work closely with you throughout this process. Your cooperation will help ensure a successful outcome.
Content Partners (1)
  • Our operations, programming and sales across our company, including our collection of stations and Westwood One affiliates, are continuing as normal.
  • We fully expect to meet our obligations and work with you as we always do. We greatly value our partnership with you and the ability we have to offer your content to some of the 245 million people we reach each week.
  • We are continuing to develop exciting new innovations, which will inure to our collective benefit as we emerge from the financial restructuring process as an even stronger partner.
Vendors (8)
  • We have ample cash to run our business throughout the financial restructuring process.
  • Cumulus expects to continue operations as normal, including meeting its obligations to vendors and paying in full under normal terms for goods and services provided on or after the filing date.
  • Your cooperation will enable us to achieve a successful outcome for the benefit of our business partners, listeners, advertising partners and other stakeholders – and, of course, you and other vendors.
  • We will meet our business obligations and pay suppliers and vendors in full under normal terms for goods and services provided on or after the filing date.
  • Invoices for goods and services provided after the filing date should be submitted through the typical accounts payable channels and payments will be processed in accordance with contract terms, if applicable.
  • Your cooperation will enable us to achieve a successful outcome for the benefit of our vendors, listeners, advertising partners and other stakeholders.
  • As always, we value our relationship with you and your organization and look forward to continuing to work with you well into the future.
  • Under U.S. bankruptcy law, unpaid debts for goods and services provided prior to the filing date, also known as “prepetition claims,” generally cannot be paid without specific Bankruptcy Court approval. For many of these, Cumulus expects to receive this approval during its first day hearing.
  • Any unpaid prepetition claims will be addressed as part of the court process moving forward but generally we expect to pay these claims in full upon emergence from Chapter 11.
  • If you believe you have a prepetition claim or an administrative claim for goods and services provided to the Company, you may need to file a proof of claim with the Bankruptcy Court to be eligible for payment on your claim. Information about the claims process will be made available at a later date.
  • You can also contact our claims agent, Epiq Systems, or go to the more detailed claims website at http://dm.epiq11.com/cumulus. Alternatively, you may call our Restructuring Hotline, which is toll-free in the U.S. at 1-844-429-1668; if you are calling from outside the U.S., the number is 1-503-597-5529.
  • The Company has ample cash on hand, combined with funds generated from ongoing operations, to support the business during the financial restructuring process, and as a result, it does not intend to seek debtor-in-possession (DIP) financing.
  • We have ample cash to run our business throughout the restructuring process.
  • Cumulus expects to continue operations as normal, including meeting its obligations to vendors and paying in full under normal terms for goods and services provided on or after the filing date.
  • Your cooperation will enable us to achieve a successful outcome for the benefit of our business partners, listeners, advertising partners, other stakeholders – and of course, you and other vendors.
  • The Company’s claims agent, Epiq Systems, will provide the appropriate forms once a deadline for filing claims has been set. Proof of claim forms and other information about the claims process will be available at the following website: http://dm.epiq11.com/cumulus.
  • You can continue to reach out to your regular contacts.
  • A special section of our website, cumulus.com/restructuring, has been developed to provide you with important information and answers to frequently asked questions. Our claims agent has also set up a website at http://dm.epiq11.com/cumulus that includes court documents and other information. We have also established a hotline that you can call toll-free from the U.S. at 1-844-429-1668 to address specific questions and concerns. For calls originating outside of the U.S., please dial 1-503-597-5529.
Investors (6)
  • Based upon the terms of the agreement that has been reached with our secured lenders, the Company’s current common stock will be canceled and will not receive a recovery in the restructuring. Once effectuated pursuant to an approved plan of reorganization, our existing secured lenders will become our new majority shareholders.
  • We cannot offer investment advice.
  • The Company’s common stock will continue to trade on the OTC Market, which is where it is currently listed for trading, subject to continuing to meet the OTC Market’s listing standards.
  • As part of the reorganization process, we will be required to periodically disclose certain financial results.
  • We may not issue earnings press releases or hold quarterly conference calls during the court-supervised process.
  • We plan to continue to file quarterly and annual reports with the Securities and Exchange Commission.
  • It is not possible to predict what value, if any, Cumulus bonds may ultimately have.
  • We do not expect to pay interest on bonds or interest that will accrue on bonds during the financial restructuring process.