NEW YORK – Cumulus Media, which operates three radio stations in Fort Smith, and hundreds of others across the country has filed for Chapter 11 bankruptcy. The company and its lenders entered into a restructuring agreement that would reduce its debt load by over $1 Billion according to broadcasting trade website RadioInsight.Com.
In Fort Smith, the company owns classic country station Big Country 107.3, country station 100.7 Nash-FM, and pop station 102.7 The Vibe.
According to a statement, Cumulus expects all operations, programming and sales to continue as normal throughout this 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.
“The actions we are taking today to address our balance sheet are a critical step forward for Cumulus. We will use this restructuring process to relieve the financial constraints on our continued progress, allowing us to focus our resources on investing in our business and people to strengthen our competitiveness and ultimately drive growth. We have ample cash to support our operations and service our advertisers, vendors and affiliates during this period, and we look forward to becoming an even stronger partner to all of them when we complete this important phase of our turnaround strategy.” said Cumulus CEO Mary Berner, “We appreciate the tremendous efforts of the Cumulus team throughout the business turnaround and thank our employees for continuing to be the true force driving our success.”
In addition to their holdings in Fort Smith, Cumulus also operates radio stations in Fayetteville and Little Rock in addition to the Arkansas Radio Network.