Aurelius Responds To Citadel Motion
April 23, 2010 at 3:16 PM (PT)
AURELIUS CAPITAL MANAGEMENT has filed its response to CITADEL BROADCASTING's emergency motion to force it to sell off the more than 11.96 million shares it recently acquired in the bankrupt broadcaster, claiming that its three entities each fall short of the "substantial shareholder" threshold and therefore can buy and hold onto the shares.
In addition, AURELIUS says that under the court order establishing procedures for transfers of common stock, the IRS definition of "beneficial ownership" is used rather than the SEC definition, and under the IRS version, three separate investment funds are not aggregated despite being under the same advisors. AURELIUS calls CITADEL's motion, filed APRIL 16th, to force AURELIUS to divest the shares and give the profits to charity "utterly unfounded and vexatious."
No hearing date on the motion has yet been determined.