Citadel Files For Bankruptcy
December 21, 2009 at 4:00 AM (PT)
As first reported by ALL ACCESS over the weekend (NET NEWS 12/20), CITADEL BROADCASTING, the nation's third biggest radio broadcaster has indeed filed for bankruptcy by filing a voluntary petition with the bankruptcy court.
See the petition here.
The bankruptcy filing, as explained by ALL ACCESS earlier this month (NET NEWS 12/10), is a pre-arranged deal with lenders to swap debt for equity and will reduce CITADEL's debt load to about $762.5 million.
The filing lists assets of $1.4 billion weighed down under $2.5 billion in debt. A huge, unserviceable debt and interest payment was due on JANUARY 15, 2010, which forced the Chapter 11 filing.
Our business will continue as usual and the company will work to emerge from the restructuring process as quickly as possible.
FORSTMANN LITTLE & CO. owns 29% of CITADEL's common stock. Secured creditors will get a share of the new loan and 90% of the new common stock in a reorganized CITADEL. Unsecured claim holders are eligible for 5% of their claim (up to $2 million) in cash, or 10% of the claim in the new CITADEL. Leading the list of unsecured debt holders are JPMORGAN CHASE BANK NA (listed as unspecified/unknown amounts), WILMINGTON TRUST CO. ($49.2 million), and THE WALT DISNEY CO. ($11.2 million).
Some other industry names on the list include ASCAP, BMI, JOHN MITCH DOLAN, SOUNDEXCHANGE, RAB, COLEMAN RESEARCH and KATZ MEDIA GROUP.
CITADEL CEO FARID SULEMAN will remain in that position overseeing the 224 radio stations presently in the company. In a press release, he noted, "Our business will continue as usual and the company will work to emerge from the restructuring process as quickly as possible."