There’s always a version of the story companies want you to hear.
Then there’s the version that shows up in court.
Right now, Cumulus Media is learning the difference between the two.
Just over a month ago, the company stepped into Chapter 11 with what looked like control. A prepackaged plan filed on March 5. Tight. Structured. Built to move quickly. The goal was simple on the surface—cut the debt, stabilize the balance sheet, and keep hundreds of stations doing what they do every day without missing a beat.
In this business, that’s the tightrope. Keep the signal strong while everything else gets rewritten behind the scenes.
And for a moment, it looked like Cumulus had found a way to do just that.
But bankruptcy doesn’t reward appearances. It tests assumptions. And now, those assumptions are getting tested from two very different directions in a Houston federal courtroom.
This is where the tone shifts.
Because what was positioned as a streamlined path forward is starting to look like a plan that may need to be rebuilt in real time.
The first challenge comes from inside the system itself.
Kevin Epstein, representing the U.S. Trustee, isn’t there to negotiate narratives. His role is oversight, and his objection cuts straight into one of the most sensitive parts of the entire proposal—third-party releases.
That phrase doesn’t mean much until you break it down. It’s about who gets protected when the dust settles. Who walks away from liability. Who gets a clean slate without necessarily stepping forward and asking for one.
Cumulus’ plan leans on an opt-out structure. If you don’t object, you’re counted as agreeing. Silence gets treated like consent.
That might sound efficient. It might even sound practical in a process where time is money.
But legally, that ground has shifted.
A recent decision by the Supreme Court of the United States in the Harrington v. Purdue Pharma case drew a clear line. Non-debtor releases—letting third parties off the hook—can’t just be handed out without clear, affirmative agreement. Not assumed. Not implied. Given.
And that’s where the problem begins.
Because if silence isn’t consent, then the foundation of this part of the plan starts to crack.
The Trustee’s position is straightforward but heavy—if creditors didn’t explicitly say yes, then legally, they didn’t say anything at all. And if that holds up, Cumulus may have to go back and rework how these protections are structured, or remove them altogether.
That’s not a cosmetic change. That’s structural.
It also opens the door to something companies in bankruptcy try to avoid at all costs—uncertainty about who remains exposed when the process ends.
And just as that issue begins to settle in, a second challenge hits from a completely different angle.
This one isn’t about legal theory. It’s about money. Tracking it. Verifying it. Making sure what’s owed actually gets paid.
That’s where SoundExchange steps in.
On paper, Cumulus’ plan says SoundExchange isn’t being impaired. In other words, nothing about their claims is supposed to change.
But when SoundExchange looked closer, the details told a different story.
Because buried inside the mechanics of the plan are provisions that could limit how they operate moving forward—specifically, their ability to audit.
And in radio, audits matter more than most people realize.
They’re how royalty organizations go back, review usage, and ensure artists and rights holders are compensated correctly. They’re not optional. They’re part of the accountability system that keeps the industry honest, or at least tries to.
Right now, SoundExchange has active audits involving Cumulus that stretch from 2017 through 2022. These aren’t closed books. These are ongoing reviews.
The concern is that, as written, the bankruptcy plan could interrupt those audits midstream. Stop them before they finish. And potentially block future audits tied to periods that are still legally open for review under federal regulations.
That’s a serious issue.
Because if those rights get limited or rerouted into bankruptcy-specific procedures, it changes how enforcement works—not just now, but retroactively.
SoundExchange isn’t asking to derail the process. They’re asking for clarity and protection. Language in the final order that ensures audits continue, that regulatory timelines are preserved, and that their enforcement authority doesn’t get boxed into something narrower than what exists outside of Chapter 11.
In short, they want the rules to remain the rules.
And when you step back, that’s what both objections are really about.
One is saying you can’t assume agreement where none was given.
The other is saying you can’t quietly change enforcement while claiming nothing’s changed.
Two different arguments. Same underlying theme—precision matters.
For Cumulus, this creates a new reality.
The plan that was supposed to move quickly now has friction. And not just procedural friction. Substantive friction. The kind that forces revisions, negotiations, and potentially delays.
And there’s already a built-in clock working against them.
The entire plan hinges on approval from the FCC for ownership transfers tied to the restructuring. That process alone can stretch for months. Add in legal challenges that require adjustments, and the timeline starts to expand whether anyone wants it to or not.
That’s the part you don’t see in the initial headlines.
The gap between filing a plan and actually getting it across the finish line.
In radio, we’re used to controlling the message. Tight clocks. Clean breaks. Defined formats. Everything timed down to the second.
Bankruptcy doesn’t work like that.
It slows everything down and forces every assumption into the open.
Right now, Cumulus is in that phase. The phase where the plan meets resistance. Where legal standards collide with operational goals. Where what looked efficient on paper has to stand up to scrutiny in practice.
And the outcome isn’t just about one company.
It’s about how the industry navigates this next chapter.
Because what’s being tested here—how far protections can go, how rights are preserved, how consent is defined—those aren’t isolated questions. They set tone. They set precedent. They shape how future restructurings get built.
Cumulus walked into this with a plan to simplify its path forward.
Instead, it’s now facing a process that’s making everything more complicated.
Not because the system is broken.
Because it’s working exactly the way it’s designed to.
And in that environment, control is never what it seems.
-JPS