Cumulus Media to go private, flush board upon Chapter 11 exit

Cumulus Media’s days as a publicly traded broadcaster are at an end. The company’s prepackaged Chapter 11 bankruptcy plan lays out a reorganization that wipes out current shareholders entirely, sees an entirely new board, and could lead to new executive leaders.

So what exactly is a prepackaged bankruptcy? Also known as a “prepack,” it is a restructuring strategy in which a company negotiates a debt relief plan with its major creditors before ever setting foot in court. Rather than filing for bankruptcy and then spending months litigating a path forward, the company hammers out the terms in advance.

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