Cumulus, Parent Company of WPRO, Lite 105, Files for Bankruptcy Again

Cumulus, Parent Company of WPRO, Lite 105, Files for Bankruptcy Again

Cumulus Media announced it was filing for bankruptcy protection — the second time the company has filed in the past seven years.

In the Providence market, Cumulus owns, WPRO-FM, WPRO-AM, The Wolf, Lite-105, and the AM station, The Score.

The company, led by CEO Mary Berner, filed for bankruptcy in 2018.

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The company, in its announcement on Thursday, tried to put the best spin on the announcement.

“While we have outperformed the market on many of our most important metrics, including share gains in both local and digital revenue, the broader macroeconomic and industry-wide pressures we have faced have remained unrelenting,” said Mary G. Berner, President and Chief Executive Officer of Cumulus Media. “Against that backdrop, it became clear that Cumulus’s remaining debt burden limited our ability to fully realize the Company’s potential, and this agreement represents a major step forward.”

This is the same type of promise for long-term financial stability as in the 2018 bankruptcy.

According to the proposed Plan of Reorganization, all existing funded debt will be canceled in exchange for 100% of the reorganized equity and $50 million in new convertible notes. The company’s revolving credit facility would be amended and restated to provide ongoing liquidity.

The bankruptcy court and the FCC will need to sign off on the deal.