Cumulus Media is working to keep its leadership team intact as it navigates Chapter 11, and the company has reached tentative agreements with CEO Mary Berner and CFO Francisco Lopez-Balboa to remain with the organization when it emerges from pre-packaged bankruptcy.
Under the agreement, both executives would remain in their roles through the bankruptcy process and at least through the end of the year, according to court documents filed as part of the reorganization.
The agreements tie both executives’ continued service to the company’s emergence from bankruptcy. If the court approves the restructuring plan, the deals take effect immediately — with Berner’s contract including automatic one-year renewals unless either side opts out.
Base salaries for both executives come in slightly lower than under their previous contracts. However, the agreements also call for a management incentive plan that allocates 10% of the reorganized company’s equity to executives and directors.
Berner’s base salary is set at $1.25 million annually, with a target bonus equal to 100% of her salary and a maximum payout of up to 200% depending on performance. Lopez-Balboa will earn $600,000 annually, with a 75% target bonus and a maximum payout of up to 150%.
The filing also outlines Cumulus‘ expected capital structure post-reorganization. The company plans to issue $50 million in new debt maturing in 2029, though terms remain subject to final negotiation. The board composition after emergence isn’t finalized either, but Cumulus tells the court it’ll have seven members selected by debt holders.
Cumulus filed its Chapter 11 plan last month. It targeted a timeline that could bring court confirmation as early as May — roughly 10 weeks after the March filing. The restructuring would eliminate about $592 million in debt and cut annual cash interest costs by nearly $49 million. Lenders have also committed up to $100 million to support operations through the process.
Bankruptcy Judge Alfredo Pérez has scheduled a combined April 15 hearing covering both the disclosure statement and plan confirmation. Objections to the place were due April 7. Documents show creditor support has reportedly grown to around 83% of secured lenders.
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