Cumulus Media Files for Bankruptcy - Owners of WPRO, HOT 106 and LITE 105
Thursday, November 30, 2017
In the Rhode Island market, this is the second time this radio cluster of stations has filed for bankruptcy in the past eight years. In 2009, Cumulus predecessor Citadel filed for bankruptcy. The company owns WPRO AM, WPRO FM, HOT 106, and LITE 105.
In the past two years, Cumulus’ stock has been crushed. Investors were forced to agree to an 8-to-1 stock swap and then saw the stock drop from $1.32 to $0.15 per share. The company was delisted by NASDAQ earlier this month.
In the bankruptcy announcement, Mary Berner, President and Chief Executive Officer of Cumulus Media Inc., said, “Over the last two years, we have focused on implementing a business turnaround to reverse the Company’s multi-year ratings, revenue, and EBITDA declines, create a culture that fosters motivated and engaged employees, and build an operational foundation to support the kind of performance we believe Cumulus is capable of delivering.”
“However, as we have noted consistently, the debt overhang left by previous years of underperformance remains a significant financial challenge that we must overcome for our operational turnaround to proceed,” she added.
The company claims 69 percent of the secured lenders have agreed to the bankruptcy provisions and the shedding of debt.
Earlier this month, the company missed an interest payment on debt totaling $23 million.
The impact to the Rhode Island cluster will likely trigger more austerity and cuts.
On Monday, Talkers magazine publisher Michael Harrison predicted that Cumulus would enter bankruptcy and forewarned that the largest radio group — iHeart — may not be far behind.
Related Slideshow: Who Really Owns Rhode Island’s Media
Statewide media organizations -- newspaper, television, radio, and digital.
Providence Journal --> GateHouse --> New Media Investment Group --> Fortress --> SoftBank
Location: Tokyo, Japan
Total Newspapers: 125 Daily Newspapers, 600 Community
WJAR-10 --> Sinclair Broadcasting
Location: Hunt Valley, Maryland
Total Stations: 233 Stations
- Cumulus Fires Top Boss at WPRO, LITE 105 and HOT 106
- “Keep Tara Granahan” on WPRO in Afternoon Petition Starts Online
- Since Cianci’s Death, WPRO AM Losing Audience, Especially in Afternoon Drive
- Democratic Chair Blasts GOP Leader and WPRO’s Granahan for Clinton Comments
- UPDATED: DePetro Pulled From the Air at WPRO, Officials Claim It Was Tied to a Pre-Scheduled Meeting
- WPRO’s Future is Doomed, Warns National Radio Expert
- UPDATED: Cianci’s Replacement Announced, New Line Up at WPRO
- WPRO Manager Tells Hosts Not to Disparage Each Other
- Exodus Continues at WPRO
- Big Radio Companies Facing Bankruptcy - WPRO and WHJY’s Parent Co’s in Financial Turmoil
- WPRO’s Big Problem Filling the Cianci Time Slot — Who’s Next
- Media in Chaos - WPRO’s Parent Co. Stock Plummeting, NYT Print Rev Down 19%, and More
- RI Secretary of State’s Chief of Staff Posts Message Calling Out WPRO’s DePetro
- WPRO’s Parent Company Cumulus Stock Collapses, Bankruptcy Looming?
- WPRO’s Parent Company: Federal Judge Shoots Down Financing and Stock Tumbles
- Media Explosion in RI - RI PBS Scores $94M, WPRO’s Parent Co. Collapse, Big Projo Changes
- WPRO and WPRI’s Dr. Tad Forced to Surrender Medical License by RI Dept. of Health
- WPRO’s Parent Company May Enter Bankruptcy Reports Wall St. Journal
- Loss of DePetro and Cianci Crushes WPRO AM’s Ratings
- State Rep Blasts Being “Sabotaged” by Granahan on WPRO
- RI Conservative Think Tank Leader Laments the Loss of DePetro from WPRO
- DePetro Announces He is Leaving WPRO Show
- Moore: Conservatives Should Boycott WPRO Over DePetro Leaving
- WPRO Advertises DePetro’s Time Slot with 50% Pay Cut (UPDATED)
- Cumulus - Parent Company of WPRO Delisted By NASDAQ and Stock Drops 34%
- New England Media Changes - Globe, Cumulus, Sports Radio and Projo
- BREAKING: Big Cuts at WPRO - Cumulus Axe Starts to Fall
- Media Buzz: Anchor Wanted, More Cumulus Cuts, Is Channel 10 For Sale?, Radio Ratings Winners
- Media Buzz: Cumulus Shake-Up Begins, New Sunrise Show Shines, Where’s The New ProJo?
- Media: Kilmartin’s House, GoLocal’s Lawsuit, TV Ratings and Cumulus Stock
- Talkers Magazine’s Harrison Discusses Cumulus Bankruptcy, DePetro, and the Future of Local Radio
- Talkers Magazine Publisher Talks About the Economic Collapse of iHeart and Cumulus