The uncertain fate of Cumulus.


Last week, the radio giant posted a 1.6% drop in radio revenue – which accounts for 75% of total revenues – for the third quarter of this year, caused, the company says, by a soft advertising environment and political givebacks. This week, Cumulus CEO Mary Berner and CFO John Abbott are acknowledging that the company might seek Chapter 11 protection if their current negotiations with lenders fail to stave off having to pony up the $2 billion of debt under which it is laboring. (Last week, the company missed a $24 million interest payment.) In a report to the SEC, Cumulus noted that a Chapter 11 filing “could result in a significant or complete loss of value to the holders of our common stock.”