Cumulus Media Bankruptcy Plan to Cut $592 Million Debt Approved

Cumulus Media Inc. received court approval to implement a bankruptcy plan that reduces the radio broadcaster’s funded debt by $592 million, defeating a Department of Justice unit’s challenge over provisions that release potential legal claims against nonbankrupt third parties.

Atlanta-based Cumulus cleared all applicable legal standards to emerge from Chapter 11 under a pre-packaged plan it reached with secured lenders before filing for bankruptcy last month, Judge Alfredo R. Perez of the US Bankruptcy Court for the Southern District of Texas ruled at a hearing Wednesday, overruling an objection lodged by the US Trustee’s office.

The Justice Department’s bankruptcy oversight ...