Judge Rejects Cumulus Refinancing Plan
February 24, 2017 at 2:45 PM (PT)
REUTERS is reporting that CUMULUS MEDIA's refinancing plan has been rejected by the judge hearing the company's case against JPMORGAN CHASE AND CO.
The ruling in U.S. District Court for the Southern District of NEW YORK by Judge KATHERINE POLK FAILLA shot down a deal CUMULUS struck on DECEMBER 6th with bondholders to reduce its $2.4 billion debt by up to $305 million in a swap of stock and debt from a $200 million revolving credit line; the company had sued JPMORGAN CHASE for allegedly withholding its consent to the parts of the plan involving the revolving credit line because, the lender and other creditors contended, the deal was not permissible under their credit agreement with CUMULUS. The ruling FRIDAY (2/24) agreed with the defendants' characterization of the plan.
CUMULUS provided a statement to REUTERS saying, “While we are certainly disappointed by the court's decision, we will continue to review all available options to address our balance sheet issues. We are making solid progress in our turnaround, and remain focused on exploring strategies that would give us the runway needed to fully execute our plan.”