Parent of Lexington talk radio station announces bankruptcy. What happens next
AI-generated summary reviewed by our newsroom.
- Cumulus filed Chapter 11 in Texas to eliminate about $600 million in debt and go private.
- Company expects a bankruptcy hearing within 60 days; emergence needs FCC approval.
- Impact on local stations is unclear; company says no disruption to operations.
Cumulus Media, the parent of Lexington talk radio station WVLK NewsTalk 590 and other local stations, announced it has filed petitions for Chapter 11 re-organizational bankruptcy protection in Texas.
The company said it has worked with its lenders to arrange a pre-packaged agreement to eliminate about $600 million in debt and take the company private.
The deal will require approval from the Federal Communications Commission. The company said they expect to hold a hearing in bankruptcy court within 60 days and emerge from bankruptcy pending FCC approval.
It is unclear what effect the changes will have for the local stations, which air a variety of local and national talk programming, including “Kruser and Krew” and “Larry Glover Live.”
Locally, Cumulus also owns WLTO-FM (102.5), WVLK-FM (92.9 FM) and WXZZ-FM (103.3 FM) known as Z-Rock 103.
Cumulus President/CEO Mary Berner said, “While we have outperformed the market on many of our most important metrics, including share gains in both local and digital revenue, the broader macroeconomic and industry-wide pressures we have faced have remained unrelenting.
“Against that backdrop, it became clear that Cumulus’s remaining debt burden limited our ability to fully realize the Company’s potential, and this agreement represents a major step forward.”
Cumulus Media has 394 owned-and-operated radio stations across 84 markets and delivers nationally syndicated sports, news, talk and entertainment programming, and across more than 7,800 affiliated stations through Westwood One, a leading national audio network.
It’s the second major change in Lexington’s media landscape this week. On March 4, E.W. Scipps Co. in Cincinnati announced Wednesday it has reached an agreement to purchase WTVQ 36, the ABC affiliate in Lexington, from Morris Network Inc. for $15.8 million. Scripps already owns the NBC affiliate, WLEX 18, creating a duopoly in the Lexington TV market.
