Judge Approves Revised Citadel Reorganization Plan
March 15, 2010 at 12:01 PM (PT)
Judge BURTON LIFLAND approved CITADEL BROADCASTING's revised reorganization plan TODAY (3/15), sending the plan to a vote by creditors. The approval came after changes to improve the terms for holders of unsecured claims, who will now get 36 cents on the dollar rather than the previously-planned 15 cents.
Secured creditors who hold $2.14 billion in debt will get a $762.5 million loan and 90% of the new shares; general unsecured creditors get $8 million cash and 2.2% of the shares.
A confirmation hearing is set for MAY 12th, at which shareholders may put forth any objections they may have to the revised plan. Shareholders VIRTUS CAPITAL and the KENNETH S. GROSSMAN PENSION PLAN had previously objected to the plan, and the court said that those parties can raise their objections at the confirmation hearing.