Cumulus Media Secures Bankruptcy Court Approval for Reorganization Plan, Paving Path to Exit Chapter 11 with \$600 Million Debt Reduction

Key Highlights

• Bankruptcy Court Approval: Cumulus Media Inc. (OTC: CMLS.Q) has received approval from the United States Bankruptcy Court for the Southern District of Texas for its Plan of Reorganization.
• Debt Elimination: Under this plan, the company will eliminate approximately \$600 million in debt, a significant deleveraging that will enhance its financial flexibility.
• Next Steps: Cumulus expects to officially emerge from Chapter 11 bankruptcy after obtaining approval from the Federal Communications Commission (FCC). The company continues to operate as usual during this process.
• Business Continuity: Operations remain uninterrupted, with Cumulus maintaining its ongoing business activities and client services.

Details for Investors

Cumulus Media’s prepackaged restructuring, initiated in March, was designed to “right-size” the company’s balance sheet to support long-term growth and competitiveness in the evolving audio media industry. The company’s President and CEO, Mary G. Berner, emphasized that court approval keeps Cumulus firmly on track to eliminate \$600 million in debt, and positions the firm to emerge as a well-capitalized company, better equipped to compete and thrive.

Shareholders should note that while the restructuring process continues, all core business operations are proceeding as normal. This stability during restructuring is critical for preserving enterprise value and maintaining relationships with advertisers and audiences.

The plan’s approval is a pivotal step, but the process is not complete until FCC approval is obtained. Upon emergence from bankruptcy, the company expects to have a much stronger financial foundation, significantly reduced debt burden, and greater flexibility to pursue strategic initiatives and investments.

What Shareholders Need to Know

• Potential Share Price Impact: The elimination of \$600 million in debt and court approval of the reorganization plan are both price-sensitive events. The prospect of improved financial stability and lower leverage may result in a rerating of the company’s shares once the restructuring is complete and FCC approval is granted.
• Continued Uncertainties: There remain risks and uncertainties, including the need for final regulatory approval and potential changes in market conditions. Investors should consider these risks in evaluating the company’s outlook.
• Business Overview: Cumulus Media reaches over a quarter billion people each month through 393 owned-and-operated radio stations in 84 markets, as well as broad national distribution via its Westwood One network and Cumulus Podcast Network. Its portfolio includes partnerships with major brands such as the NFL, NCAA, the Masters, US Soccer, AP News, and the Academy of Country Music Awards.
• Forward-Looking Statements: Management has cautioned that forward-looking statements regarding future performance, financial condition, and strategic direction are subject to risks and uncertainties. These include the successful implementation of strategic initiatives, economic conditions, and the rapidly changing media industry landscape.

Additional Information

Investors can access further details regarding the restructuring at www.cumulus.com/restructuring. For direct inquiries, the Investor Relations Department can be contacted at [email protected] or 404-260-6600.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with their financial advisors before making investment decisions. The information provided contains forward-looking statements subject to risks and uncertainties, including those described in Cumulus Media’s SEC filings. Actual results may differ materially from those expressed or implied herein.

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