AR Broadcasting Holdings and affiliates achieve prepackaged chapter 11 restructuring in 33 days
Client(s) Cumulus Media Inc.
Jones Day represented Cumulus Media Partners, LLC as the nondebtor parent company in a prepackaged bankruptcy case for its now-former direct and indirect subsidiaries AR Broadcasting Holdings, Inc.; AR Licensing, LLC; and AR Broadcasting, LLC. These entities, which own four radio stations in Houston and Kansas City, filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware on November 17, 2011. Before filing their bankruptcy cases, the debtors negotiated and obtained 100% secured lender support for a prepackaged reorganization plan. Under the plan, the secured claims of the debtors' prepetition lenders, totaling approximately $100 million, were satisfied with a combination of new term loans, new stock in the debtor companies and warrants for additional new stock. All other creditors' claims passed through the bankruptcy case unimpaired, and the equity interests of Cumulus Media Partners in the lead debtor were cancelled. The plan and all other relief requested in the cases was uncontested, and the bankruptcy court confirmed the debtors' plan in only 33 days, on December 20, 2011.
