The U.S. Bankruptcy Court approved Cumulus Media’s Disclosure Statement related to the Company’s Revised First Amended Joint Plan of Reorganization.
As previously reported, “Among other benefits, the Plan: Reduces the Company’s pro forma indebtedness by $1.039 billion versus its existing capital structure; Capitalizes the Company with favorable debt terms, including an extended maturity date; and has the support of the requisite majorities of the Debtors’ prepetition secured lenders, the Debtors’ largest creditor constituency….The Plan provides for the treatment of Allowed Claims against, and Interests in, the Debtors as follows (the securities issuable under the Plan are referred to in this Disclosure Statement as ‘New Common Stock’ and the ‘Special Warrants,’ and, collectively, the ‘New Securities’).”
In addition, “Each Holder of an Allowed Credit Agreement Claim will receive its pro rata share and interest in: (i) $1.3 billion in principal amount of first lien term loans (the ‘First Lien Exit Facility’); and (ii) 83.5% of the issued and outstanding amount of the New Securities, subject to dilution on account of the Management Incentive Plan (the ‘Term Loan Lender Equity Pool’). Subject to certain conditions, including that the Allowed Convenience Claims do not exceed $2 million in the aggregate, each Holder of an Allowed Convenience Claim – that is, a Holder of a General Unsecured Claim of $20,000 or less or a Holder of an Allowed General Unsecured Claim in a greater amount who voluntarily elects to reduce its Claim to $20,000 – will receive Cash in an amount equal to 100% of its Allowed Convenience Claim.”
The Court scheduled an April 12, 2018 hearing to consider the Plan.
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