Is Citadel Contemplating Bankruptcy?
Q3 Revs Fall
November 9, 2009 at 4:09 AM (PT)
CITADEL BROADCASTING third quarter radio net revenue fell 9.9% to $155.8 million, as the company discloses in its quarterly SEC filing that it is discussing the possibility of Chapter 11 bankruptcy with its lenders.
The company, in the filing, says that it "does not expect to meet its covenant requirements under the Senior Credit and Term Facility as of JANUARY 15, 2010"; it hired a financial advisor in MAY to evaluate its options (NET NEWS 6/4).
Consolidated net revenue fell 14.1% to $183.8 million, with radio network revenue off 31.5%, attributed to the loss of SEAN HANNITY and the late PAUL HARVEY, taking $8 million off the books. Consolidated segment operating income fell 21% to $57.9 million, blamed on lower ad revenues.