Cumulus Media Plan Would Cancel Shares, Go Private

RADIO ONLINE | Monday, March 9, 2026 | 3:34pm CT

Cumulus Media

Cumulus Media's proposed Chapter 11 restructuring would eliminate existing shareholders and convert the company into a privately held broadcaster, according to the company's prepackaged Plan of Reorganization filed in U.S. Bankruptcy Court.

Under the plan, all current equity interests in Cumulus Media would be canceled with no recovery for shareholders. The filing states that on the plan's effective date, each holder of existing equity "shall have its Existing Equity Interest... cancelled, released, discharged, and extinguished without any distribution."

That means current shareholders - including those holding Cumulus Media's over-the-counter stock (CMLS), which has recently traded below $0.10 - would be wiped out as part of the restructuring.

The plan also indicates that the reorganized company will operate as a private entity following emergence from Chapter 11. The filing defines the "Reorganized Company" as Cumulus Media Inc. after restructuring, which "shall... be a private company" unless otherwise agreed by key creditors.

Ownership of the reorganized broadcaster would primarily shift to lenders. The plan provides that holders of secured 2029 debt claims would receive about 95% of the new equity, while other funded debt claims would receive about 5%, subject to dilution from a management incentive plan.

The restructuring would also create a new board of directors and potentially new leadership once the company exits bankruptcy.

Cumulus, one of the nation's largest radio broadcasters, operates hundreds of stations across the U.S. along with the Westwood One network. The prepackaged Chapter 11 process is designed to quickly restructure the company's debt while allowing operations to continue during the court process.

If approved by the bankruptcy court and completed as proposed, the plan would effectively end Cumulus Media's status as a publicly traded company.