Often, when a Louisiana resident hears of a company filing for bankruptcy, they imagine a retailer or a chain restaurant. Though bankruptcies can certainly benefit these entities, many other types of businesses may find financial relief from bankruptcy as well. For example, a radio company in another state recently chose to file Chapter 11.
Cumulus is a radio company based in the southern United States and has been named the second largest radio company in America. It owns 446 radio stations across the country. After the purchase of another broadcasting company, however, Cumulus has suffered a decrease in ratings and an increase in debt. Though recent measures by executives have cut out unnecessary expenses, reports indicate that the company still faces about $2.3 billion in debt.
For these reasons, officials at Cumulus chose to file for Chapter 11 bankruptcy. The plan that has been negotiated in bankruptcy court will, once approved, allow the company to cut its debt by over $1 billion. Through filing Chapter 11, the company will be able to restructure its finances while remaining on air for listeners and continuing to employ its workers.
Like Cumulus, many different types of businesses may find financial stability through filing for Chapter 11 bankruptcy. Because this form allows restructuring without liquidating assets, businesses are able to continue with operations while still taking care of their debts. Any owners who find their companies financially struggling to pay overwhelming debts would likely benefit from consulting an experienced Louisiana bankruptcy attorney. An attorney could further explain the complexities of bankruptcy and provide assistance in filing.
Source: radiotvtalk.blog.ajc.com, "Atlanta-based Cumulus Media files Chapter 11 bankruptcy protection", Rodney Ho, Nov. 30, 2017