Is this the start of the end for Cumulus or the first step to a refinance and manageable debt load? Time will tell. Cumulus was scheduled to make an interest payment of $23.6 million on 7.75% senior notes due 2019. In an SEC filing Wednesday, Cumulus’ board of directors authorized the company to forgo that interest payment and a 30-day clock is ticking. That’s the grace period Cumulus has, giving the company one month to make the payment or go into what is called an “Event of Default.”

An “Event of Default” means lenders can demand full repayment of the entire loan sooner than it was originally due. An “Event of Default” also enables the lenders to seize any collateral that has been pledged and sell it to recoup the loan. The filing says the decision was made “in support of the Company’s efforts to develop and implement a restructuring that will allow the Company to continue its operations.”

Is this Cumulus’ hardball attempt to get the bondholders to the table? Can the company be saved or is bankruptcy becoming a real possibility? One financial expert says he’s not really sure why Cumulus defaulted but something is going to happen with the company very soon. Cumulus has been trying to refinance approximately $2 billion in debt.

On October 26, Cumulus pre-announced earnings for Q3. The company expects revenue in the range of $286 to $288 million. Revenue was $286 million in Q3 of 2016 and $289 million in Q3 of 2015. Cumulus will release Q3 earnings in one week.

In that pre-release, Cumulus CEO Mary Berner said, “While the company has ample cash to operate our business, Cumulus continues to be constrained by an excessive debt load. With the assistance of outside advisors, we are proactively exploring a range of alternatives with our lenders and noteholders to restructure the balance sheet and reduce debt. Our objective is to be able to redirect more of our time and resources to where they can have the greatest impact on our future – investing in our employees, in key technologies, and in initiatives that drive growth.”

In last night’s SEC filing, the company stated: “This (default) decision was made in support of the Company’s efforts to develop and implement a restructuring that will allow the Company to continue its operational and financial momentum, as evidenced by the results announced in its selected preliminary operating results for third quarter 2017 on October 26, 2017. The decision to withhold payment during the grace period will not impact the Company’s operating constituents, including its employees, advertisers, network affiliates, vendors and content partners.”