Merlin Media & Unsecured Creditors File Objections To Cumulus Restructuring
Merlin Media and the “Official Committee of Unsecured Creditors” have filed objections to Cumulus Media’s planned bankruptcy restructuring.
The Unsecured Creditors, who combined hold nearly $610 million of Cumulus debt, state that the deal with the holders of nearly 69% of the $1.729 billion in term loans contained numerous terms that inappropriately benefit the term loan lenders at the expense of the unsecured creditors and would significantly overcompensate the
Term Loan Lenders to the detriment of unsecured creditors.
Merlin Media had exercised its put option to convert its LMA of Classic Rock “97.9 The Loop” WLUP and Alternative 101.1 WKQX Chicago to Cumulus for $50 million in late October. Merlin claims that Cumulus sought to negotiate the price to a lower cash amount and after filing for bankruptcy proposed that Merlin’s claim be treated as a subordinated claim under the theory that Cumulus would’ve been able pay the purchase off in Cumulus stock.