Jerry Del Colliano’s newsletter today says Cumulus has retained a bankruptcy law firm. That makes a lot of sense. Due to non-proportional voting rights, the Dickeys with only 5% of the stock can outvote the owner who owns 24% of the stock. I think this needs to be changed by Congress.
https://insidemusicmedia.com/
So the only way past this is to force the Dickeys to give up control. The lenders on the $2.2 billion in debt can cause that to happen. The threat of bankruptcy may be enough to convince the Dickeys to leave – if the company goes through bankruptcy, their 5% likely becomes worth $0.00 – better to own 5% of a company you don’t control than own 0% of a company you don’t control.
In the spirit of full disclosure, I bought 3000 shares of CMLS about two weeks ago. Maybe I can attend the bankruptcy hearings 😉
CMLS went up $.02 a share today… ka-ching!
Cool. You are part of the 1 % ! I never knew anyone in the on percent : )
well if you go to the board meeting, tell them ‘Nash country’ sux !
LOL
Parrott
Does it? Nash or Nash Icon? (aka Classuc Country)
Only problem with bankruptcy is: stock value = $0.00
I remember GM. The shareholders took it in the shorts while the unions made out with ownership. Thank you, Obama.
It’s worse than that. At $0.01 there are no buyers. Without selling the stock, you can’t take a tax loss. Back in the good old days, brokers would buy the stock @ $.01 as a courtesy to their good customers so they could exit the stock.
At some point, if the spiral goes on, low market cap (# shares * price) will get the stock delisted, then it is “game over”. Going below $1 a share is also significant.
Today’s rumor news is that Cumulus lawyers are aggressively threatening affiliates who want out of their 24/7 music contracts
Interesting. I am no tax attorney, but I had believed the owner could donate the shares and write off the loss. If not, that is scary.
Well, for that you have to find a charity that will take them 😉 Try donating a time share condo to one