With a crucial court hearing just days away, junior creditors have formed ranks to challenge Cumulus Media Inc.’s bankruptcy exit plan, WSJ Pro Bankruptcy reported. Operator of one of the country’s largest chains of radio stations, Cumulus Media says that its business is worth enough to pay off only its top-ranking lenders in full. Unsecured creditors, including bondholders owed more than $600 million, will get less than 14 cents on the dollar, if Cumulus’s chapter 11 exit plan wins court approval. Bankruptcy Judge Shelley Chapman will start taking evidence on Thursday in a New York bankruptcy courtroom. Cumulus filed for chapter 11 protection on Nov. 29, 2017, after months of trying to appease competing camps of creditors by offering to swap equity for debt. Ultimately, the company made a deal with senior lenders owed $1.7 billion, spurning competing overtures from bondholders.
