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Cumulus debt restructuring proposal announced!

Topics of general interest that just don't fit anywhere else.
Radio Sucks
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Re: Cumulus debt restructuring proposal announced!

Post by Radio Sucks » Mon Feb 05, 2018 4:31 pm

There are people actually buying and selling this stock! Isn't it worthless as of the filing?

https://flbcnews.com/needle-action-acti ... move-4-00/



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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Sat Feb 10, 2018 6:46 pm

Good info can be found in the below article; March 23 will be a very important day in the Cumulus bankruptcy saga (assuming the voting deadline isn't extended).

http://www.insideradio.com/free/cumulus ... 8bb3d.html


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Tue Mar 06, 2018 6:17 am

WLUP has been sold to EMF for $21.5 million.

Clearly, a distressed seller sort of price. Fair market value for the signal is probably closer to $30 million. A ~30% haircut between fair market value and orderly liquidation value is about right.

I suspect Hubbard, Weigel or Sinclair will pick up 101.1. WKQX would make a nice stablemate for WDRV, and in the process, The Drive's main competition (The Loop) gets eliminated without Hubbard even needing to buy the station!

I've said since November 30 that the future of WLUP & WKQX was in doubt. The dopey trade press simply regurgitated Mary Berner's press releases instead of looking into the details of the BK documents.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

Deleted User 10525

Re: Cumulus debt restructuring proposal announced!

Post by Deleted User 10525 » Wed Mar 07, 2018 1:13 am

101.1 does decently for an alternative station, so yeah I could see Hubbard buying the station. I suspect the cloud will hold on WLS and WLS-FM.



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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Wed Mar 07, 2018 6:22 pm

One thing about Hubbard - they don't like growing big clusters of stations in a particular market simply for the sake of maximizing the number of stations under their umbrella.

They approach each market with a specific strategy geared for that market.

If they think they can generate decent free cash flow from 101.1 from a format that can stay in place long-term (with some updating/tweaks from time to time as needed), they'll make a formidable offer.

If not, then they'll stay on the sidelines.

Cumulus says they're still "very, very interested" in making a deal for 101.1. Problem is - Cumulus is cash strapped until AFTER their bankruptcy case concludes.

It is logical to conclude that any other buyer would like need to be a party who already has broadcast studios in the Chicagoland area. Remember, WKQX is still broadcasting from the Cumulus compound. If someone else scoops up WKQX, the LMA between Merlin & Cumulus terminates, meaning WKQX would need to find a new home very quickly!


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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Ed Joseph
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Re: Cumulus debt restructuring proposal announced!

Post by Ed Joseph » Wed Mar 14, 2018 5:19 pm

If I was a broker and had money.... I'd buy their Flint /Saginaw clusters, pair them up as combos if at all possible, and sell them that way, to local owners. In Flint, for instance, WTRX & WFBE, WWCK stays a combo, sell WDZZ solo to Krol, which has only one station in the market. That's what I'd LIKE to see happen if they have to liquidate. That might bring some excellent radio people out of exile and a chance to have something decent on the dial in Flint again.


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audiophile
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Re: Cumulus debt restructuring proposal announced!

Post by audiophile » Thu Mar 22, 2018 6:32 am

I heard Cumulus has zero budget for engineering. Crazy!


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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Fri Mar 23, 2018 6:50 pm

Cumulus, specifically its current executive team, received a big break from the Bankruptcy court yesterday:

https://radioink.com/2018/03/22/cumulus-gets-more-time/

This means a Lew Dickey-led group or any other group will be unable to file a competing Plan of Reorganization for at least 90 more days.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Tue May 01, 2018 7:48 pm

Mary Berner got her wish!

Cumulus' Plan of Reorganization received court confirmation earlier today; it will likely become effective within the next 30 days. The plan reportedly eliminates $1 billion of debt from Cumulus' balance sheet, which is consistent with the total amount of debt reduction Cumulus sought in its initial filing.

I will try to thumb through the details this evening and will post highlights either tonight or tomorrow night.

The fact the company ponied up the cash to purchase WKQX a few weeks ago suggested to me executive management was confident a successful outcome was near.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Tue May 01, 2018 8:01 pm

Well, the confirmed plan (which was approved around or shortly after 5PM ET today) has not yet been posted to Epiq.

I have no idea if it is the same as the December 9, 2017 proposed plan or not.

Will search again around this same time tomorrow.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Wed May 02, 2018 6:40 pm

So, Mary wins...Lew loses...right?

Not necessarily!!

This ain't over by a long shot. Remember who the equity owners in New Co will be -- mostly, it will be the senior secured term lenders who were forced to take a several hundred million dollar write-down of their pre-petition debt.

Commercial lenders generally aren't in the business of holding "long" equity positions in unrelated businesses. They will want to monetize their equity in New Co so that they can recoup some of the monetary losses they incurred.

I do not know off-hand if the confirmed plan contains any sort of blackout period with regard to sale of stock. Assuming no such period exists, or in the event the blackout period is very limited in duration, it is quite likely Lew Dickey & his cronies will be working the phones aggressively seeking to buy up stock.

Bear in mind Lew Dickey is required to deploy the equity capital raised by his Modern Media firm by November 17, 2018 (or enter into a definitive agreement by November 17 to deploy such capital by February 17, 2019), or else the company will be required to return invested capital to its shareholders.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Mon Jun 04, 2018 8:17 pm

Cumulus officially emerged from chapter 11 today.

Company has already indicated it has applied to NASDAQ to allow its new stock to be publicly traded. That's interesting considering the fact I don't believe new shares (above and beyond what pre-petition creditors received today) are being issued. This will basically serve as a vehicle for pre-petition lenders to dump their shares in order to monetize them.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

Radio Sucks
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Re: Cumulus debt restructuring proposal announced!

Post by Radio Sucks » Wed Jun 06, 2018 8:34 am

This will basically serve as a vehicle for pre-petition lenders to dump their shares in order to monetize them.
Or to be more accurate "This will basically serve as a vehicle for Lew Dickey Jr to buy back his company from the lenders who just want their f$*&ing money"



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MWmetalhead
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Re: Cumulus debt restructuring proposal announced!

Post by MWmetalhead » Thu Jun 07, 2018 8:54 pm

Bingo.


Radio's downfall has been under-investing in its core competency and becoming distracted by delusions of grandeur by thinking development of a half-assed national digital strategy will somehow put it on par with the Facebooks and Googles of the world.

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