Citadel Avoids Technical Default With Interest Payment
September 21, 2009 at 4:54 AM (PT)
CITADEL BROADCASTING has made its overdue interest payment, reports the WALL STREET JOURNAL, and has avoided technical default for now.
The late $2 million payment, due WEDNESDAY, gives the company a reprieve from imminent default, but CITADEL will need to meet the requirement that it have $150 million cash on hand on JANUARY 15th to meet conditions on its senior debt, and the company has previously said in SEC filings that it will be "difficult" to meet that requirement; it is negotiating with lenders on a debt-for-equity swap.
The JOURNAL quotes a lender as saying that CITADEL's debt restructuring is "likely" to be done through a bankruptcy filing, although CITADEL CEO FARID SULEMAN did not return a call for comment on the issue.