FCC OKs Cumulus Transfer Of Control, Rejects Challenge By Creditor

Transfer Approved

The FCC has approved the transfer of control of CUMULUS MEDIA, INC. from the former corporate structure (as a debtor-in-possession) to the new Board as outlined in the company's Chapter 11 bankruptcy reorganization plan, including the divestiture spinoffs to the MAINSTAY STATION TRUST, LLC, rejecting a Petition to Deny filed by unsecured creditor WGH COMMUNICATIONS, INC.

WGH's challenge was based on the possibility that the post-transfer CUMULUS might exceed the 25% foreign ownership cap and would not be in the public interest. The COMMISSION agreed with CUMULUS that WGH lacked standing in the matter and treated the Petition as an informal objection, then said that the matter of foreign ownership is not an issue for the transfer but is instead the subject of a separate proceeding in which CUMULUS is asking the FCC for a declaratory ruling that it be permitted to exceed the cap.

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