Citadel Lawyer Predicts 300 Days In Bankruptcy
December 22, 2009 at 4:30 AM (PT)
It could be less than a year in bankruptcy for CITADEL BROADCASTING, reports REUTERS who writes a lawyer for the broadcast company said CITADEL could exit bankruptcy in just 300 days under its prenegotiated deal with lenders.
YESTERDAY (12/21), at the company's "first day" court hearing in U.S. Bankruptcy Court in MANHATTAN, JONATHAN HENES, a bankruptcy attorney at KIRKLAND & ELLIS representing CITADEL, said the company "believes exiting bankruptcy protection in the next 300 days is doable under its current plan." REUTERS reports "Judge BURTON LIFLAND approved requests from CITADEL to continue to operate its cash management system, use its cash collateral, and pay certain employee wages."
CITADEL reportedly has $36 million in cash on the books at present, and projects it will have $63 million in cash in seven weeks, a lawyer for the company told the court. "Cash is exactly what this company needs to stabilize operations and continue business," Joshua Sussberg, another CITADEL attorney from KIRKLAND & ELLIS, said at the hearing.
CITADEL said in court documents that shareholders will be wiped out under the proposed reorganization plan.