Media Bureau Approves Cumulus Reorganization
The FCC Media Bureau approved license transfer applications connected with Cumulus Media’s bankruptcy reorganization (see 1805020035), and rejected a petition to deny by creditor WGH, said an order issued Friday. The reorganization involves rejiggering Cumulus’ stock, and the transfer of…
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control is between Cumulus’s current group of shareholders and its new, reorganized shareholders, the order said. WGH argued the reorg would lead to Cumulus being more than 25 percent foreign-owned, but the bureau said Cumulus created mechanisms that will prevent that from occurring, and such arguments will be properly addressed when Cumulus seeks a declaratory ruling to exceed the 25 percent threshold. The bureau said WGH doesn’t have standing to petition for denial of the transaction, so its argument was treated as an informal objection. To bring the transaction into compliance with local ownership rules, Cumulus will place into a divestiture trust radio stations in four markets where it exceeded the ownership limits -- the combinations previously were grandfathered, the order said. The transfer of control also means any Cumulus mutually exclusive FM translator application in recent translator auction 100 will be dismissed, the order said.