Cumulus has unhappy creditors.

A group of loan debt, senior noteholders and unsecured creditors have filed objections to the Chapter 11 reorganization plan Cumulus has submitted to the US Bankruptcy Court. There are basically two objections raised by the creditor: In one case, the reorganization plan filed by Cumulus “grossly underestimates” the value of the company by “hundreds of millions of dollars.” In the other case, the distribution of equity to unsecured creditors is done “in a way that fundamentally violates the Bankruptcy Code’s distribution scheme.” Cumulus responded by saying that “both objections largely reiterate statements that have already been made through the restructuring, which we believe have no merit…”