Citadel Asks Court To Void Investment Company's Stock Purchases
April 19, 2010 at 4:39 AM (PT)
CITADEL BROADCASTING CORP. has filed an emergency motion with U.S. Bankruptcy Court asking for the court to block AURELIUS CAPITAL MANAGEMENT and its affiliates from buying up shares in the company.
CITADEL, which is in Chapter 11 bankruptcy proceedings, noted that AURELIUS, its companies and Senior Managing Member MARK D. BRODSKY had purchased 16.7 million shares of CITADEL common stock in recent weeks, making it a "Substantial Shareholder" in violation of court orders requiring advance written declaration of purchases of at least 11.96 million shares and allowing CITADEL to file a Notice of Objection to the purchase.
CITADEL's motion asks that the purchase be voided and the shares be resold, with any profits being donated to non-profit organizations.