Cumulus Media Reaches Restructuring Support Agreement With Lenders to Cut $600 Million in Debt

Paul, Weiss is advising Cumulus Media, which operates nearly 400 U.S. radio stations, on its prepackaged plan of reorganization and voluntary chapter 11 case in the U.S. Bankruptcy Court for the Southern District of Texas. Cumulus has reached a comprehensive restructuring support agreement with a group of its lenders to eliminate about $600 million of its nearly $700 million debt through a debt-for-equity swap, significantly deleveraging its balance sheet. Cumulus plans to continue operating throughout the process, with no impact to employees, partners or listeners.

Under the agreement, Cumulus will exchange its existing funded debt for 100% of its reorganized equity and $50 million in new convertible notes. It will also amend and restate its asset-based revolving credit facility to provide continued liquidity. Cumulus expects to emerge from chapter 11 in the summer of 2026.

The Paul, Weiss team includes restructuring partners Paul Basta, Kyle Kimpler, Jacob Adlerstein and Sung Pak and counsel Sarah Harnett; executive compensation partner Jean McLoughlin; tax partner Matthew Jordan; litigation partner William Clareman; and corporate partners Samuel Welt and Timothy Cruickshank and counsel Lyudmila Bondarenkoy.