Citadel Sues Bondholders Over Default Claim
July 21, 2006 at 6:09 AM (PT)
CITADEL BROADCASTING has filed suit against some of its bondholders in a dispute over the bondholders' claim that the purchase of and merger with ABC RADIO's stations and radio networks constitutes a "fundamental change" triggering a default and acceleration of the notes.
CITADEL disclosed in an 8-K filing to the SEC that it filed suit in NEW YORK STATE Supreme Court on MONDAY (7/21) seeking a declaratory judgement affirming that the ABC deal is not a "fundamental change" for purposes of the indenture. The company had previously disclosed that it had gotten letters from an attorney representing holders of over $109 million of its 1.875% Convertible Subordinated Notes due 2011 claiming the default and acceleration.