Cumulus Defaults On Interest Payment For Notes, 30-Day Grace Period Starts Today

Skips Payment

CUMULUS MEDIA INC. has informed the SEC that it will miss TODAY's interest payment due of about $23.6 million on subsidiary CUMULUS MEDIA HOLDINGS INC.'s 7.75% Senior Notes due 2019, a default that triggers a 30-day grace period that, if payment is not made before the 30 days run out, will in turn lead to an "Event of Default."

Skipping the payment was the decision of the CUMULUS board of directors based on ongoing talks with creditors on a voluntary restructuring of the company's debt.  The SEC filing says that the board's election of defaulting on the payment "was made in support of the Company’s efforts to develop and implement a restructuring that will allow the Company to continue its operational and financial momentum" and "will not impact the Company’s operating constituents, including its employees, advertisers, network affiliates, vendors and content partners."

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