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Cumulus Bankruptcy Agreement Approved

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The U.S. Bankruptcy Court approved Cumulus Media’s motion for an order authorizing the Debtors to assume (1) certain rating products agreements, (2) a letter agreement regarding “Addback Services” and (3) agreements with The Nielsen Company (US), Nielsen Audio and eXelate.

As previously reported, “In the Summer of 2017, the Debtors started discussing renewal options with Nielsen to amend their existing contractual relationships which were set to expire on December 31, 2017….The Nielsen Agreements achieve the Debtors’ cost-saving goals in at least three ways. First, the Nielsen Agreements generate multi-million-dollar expense savings for the Debtors in the first year through a combination of discontinued products and commercial term modifications on remaining products. Second, the Nielsen Agreements provide for a four-year extended term with an additional one-year option. Finally, the Debtors preserve the ability to add back services at any time at mutually agreed commercially sustainable terms.”

In addition, “Collectively, the Nielsen Agreements lock in critical services for the next four years (with an option to extend for a fifth), which will result in multi-million dollar annualized savings each year….In connection with the assumption of the Nielsen Agreements, the Debtors will cure all amounts owed under the Nielsen Agreements (the ‘Cure Amount’), including approximately $5,492,416.61 related to prepetition services.”

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