http://www.businessweek.com/news/2011-11-17/cumulus-media-puts-ar-broadcasting-unit-into-bankruptcy.html
Not the whole company…
Around 5 years ago, Cumulus got involved with a deal creating “cumulus media partners” – hedge fund money purchased the former Susquehanna broadcasting. The existing Cumulus in Atlanta would run the stations and be part owner. As part of that deal, Cumulus contributed several of its radio stations.
Well Cumulus Media Partners very quickly failed to meet its debt requirements and was taken over by the lenders. Cumulus wrote off its investment in CMP as worthless.
Just prior to taking over Citadel, Cumulus finally acquired CMP making it one company, which had been the original plan.
AR broadcasting holds the license to 4 stations that were part of that mess. 100% of the creditors agree with pre packaged bankruptcy. More than anything, this is a formality so that Cumulus has control legally of all of its stations.
Will this be the final time we see Cumulus and Bsnkruptcy in a headline? They’re in debt to the tune of about $2.7 billion in a business with a very uncertain future. Time will tell.
I have always avoided Cumulus stations. I cannot stand their: “You’re listening to Cumulus Radio” over and over during commercials. Extremely annoying.