Report: Citadel Shareholders To Oppose Disclosure Statement
March 8, 2010 at 12:59 PM (PT)
Two major shareholders in CITADEL BROADCASTING CORP. plan to oppose the approval of the bankrupt radio group's disclosure statement at a hearing in U.S. Bankruptcy Court TOMORROW (3/9).
BLOOMBERG NEWS reports that VIRTUS CAPITAL LLC and KENNETH S. GROSSMAN PENSION PLAN will contend that the plan undervalues the business, shortchanging creditors and shareholders. In addition, VIRTUS and the GROSSMAN PLAN say that stock incentive bonuses for CITADEL management give too much -- between $135 and $180 million in new stock under a "proper evaluation," $82.5 to $110 million even at depressed prices -- to the managers.
CITADEL has told the court that it expects to emerge from bankruptcy by APRIL 30th.