After filing for bankruptcy earlier this year, Cumulus Media has been granted approval for its restructuring.
The company’s plan to remove $660 million in overall debt was approved by US Bankruptcy Judge Alfredo R. Perez. As part of the plan, the company will go private with its debt holders converting that debt into equity in the organization.
Previous documents showed that 83% of those debt holders had shared their approval for the restructuring plan from Cumulus.
As part of the restructuring, a new board of directors will be appointed for the company.
However, CEO/President Mary Berner and CFO Francisco Lopez-Balboa will remain in their roles with Cumulus. 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%.
“When we initiated this prepackaged restructuring in March, we did so with a clear objective: to right-size our balance sheet to support long-term success,” said Berner. “The court’s prompt approval of our plan keeps us firmly on track to eliminate approximately $600 million in debt and positions us to emerge with a significantly stronger financial foundation.
“We look forward to completing the restructuring and emerging as a well-capitalized company, better equipped to compete in the evolving audio landscape,” she concluded.
With the approval granted by Judge Perez, Cumulus Media is now awaiting FCC approval to emerge from its pre-packaged Chapter 11 bankruptcy. That option will be available after it files a transfer of control application.
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