(Bloomberg) -- Cumulus Media Inc. and some of its creditors have entered into discussions regarding the company’s proposed distressed exchange, according to people with knowledge of the situation.

The struggling radio broadcaster in February asked holders of its first-lien bonds and term loan, both due in 2026, to swap into new, longer-dated debt at a discount of about 20 cents on the dollar. Under the plan non-participating creditors would have their collateral stripped — diminishing the value of their debt. 

Cumulus and its creditors are in agreement on the need to length the company’s maturities, said the people, who asked not to be identified because the discussions are private. The extent of the haircut creditors take remains a sticking point in the ongoing negotiations, they said. 

Read More: Cumulus Faces Creditors’ Wrath Over Proposed Debt Exchange

As talks unfold, Cumulus Wednesday pushed back the expiration date for the proposed exchange to April 2 from an earlier March 26 deadline.

Messages left with Cumulus and Gibson Dunn & Crutcher, which is advising a creditor group, were not returned.

Cumulus’s $346 million of first-lien bonds traded at 57.4 cents on March 22, down from 67.7 cents on Jan. 2, according to Trace data. The company’s roughly $330 million first-lien loan is quoted at around 65.8 cents on the dollar, according to data compiled by Bloomberg.

©2024 Bloomberg L.P.