Cumulus Media filed for Chapter 11 bankruptcy protection on Thursday (March 5), seeking to shed about $600 million in debt through a prepackaged restructuring.
The Atlanta-based radio broadcaster, which operates 394 radio stations across 84 markets, entered into a restructuring support agreement with an ad hoc group of lenders holding the company’s 2029 term loans and senior secured notes also due in 2029, according to an SEC filing.
Under the plan, existing equity will be eliminated, while creditors will exchange their claims for new equity in the reorganized company and $50 million in convertible notes. Additionally, the company’s asset-based revolving credit facility will be amended and restated to provide continued liquidity, the company said.
The restructuring agreement is expected to cut annual cash interest expense by about $49 million.
Cumulus expects the US Bankruptcy Court for the Southern District of Texas to hold a hearing to consider the approval of the restructuring plan within 60 days of the filing. The company expects to emerge from bankruptcy after receiving regulatory approvals from the Federal Communications Commission.
The bankruptcy filing marks Cumulus’ second after previously filing for Chapter 11 in November 2017. It emerged from bankruptcy in June 2018.
“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.”
Mary G. Berner, Cumulus Media
Cumulus’ latest financial woes reflect pressure on traditional radio. In the quarter ended September 30, 2025, the company’s net revenues slumped 11.5% YoY to $180.3 million, leading to an operating loss of $4.3 million, versus an operating profit of $6.68 million a year prior, according to the company’s quarterly figures.
Q3 2025 net loss more than doubled YoY to $20.5 million from $10.3 million.
In the nine months ended September 30, 2025, Cumulus posted a 9% YoY drop in revenues to $553.6 million, with operating losses ballooning 15% YoY to $15.4 million. Net loss for the period widened 26% YoY to $66 million.
“Against that backdrop, it became clear that Cumulus’s remaining debt burden limited our ability to fully realize the Company’s potential, and this agreement represents a major step forward.”
Mary G. Berner, Cumulus Media
In announcing the company’s latest bankruptcy filing, Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said: “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.”
“Against that backdrop, it became clear that Cumulus’s remaining debt burden limited our ability to fully realize the Company’s potential, and this agreement represents a major step forward.”
Berner added: “The prepackaged process is intended to address the Company’s debt efficiently with no disruption to our operations, our people, and our strategies. 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.”
Those pressures also affect other traditional radio broadcasters. After emerging from bankruptcy in September 2024, Audacy laid off as many as 300 employees last year across the company in a cost-cutting initiative.
In 2018, iHeartMedia filed for bankruptcy to restructure about $20 billion in debt. The company has since turned around its business, recently reporting a 0.8% YoY increase in Q4 2025 revenue to $1.13 billion. However, consolidated adjusted EBITDA for the quarter was down 10.5% YoY to $220 million.
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