Citadel Plan Hearing Set For Today
May 12, 2010 at 4:03 AM (PT)
The hearing on CITADEL BROADCASTING's reorganization plan is scheduled for TODAY (5/12); the big day follows a flurry of additional filings from CITADEL and its creditors.
CITADEL filed a response to AURELIUS CAPITAL's objections, saying that it "took the bull by the horns" in the SUMMER of 2009 by hiring advisors to explore a sale or "balance sheet fix," choosing the latter after encountering little interest in the former. The result was, the filing asserted, " a highly negotiated plan support agreement, which is the foundation for the Plan."
The response repeated CITADEL's objections to AURELIUS CAPITAL's purchase of CITADEL stock starting on MARCH 30th, charging that the hedge fund did so "in anticipation of litigation ... before and without rolling up its sleeves to garner a well-thought out view of value -- if it ever did this at all." AURELIUS' valuation of CITADEL at $3 billion is at odds with CITADEL's preferred valuation by LAZARD's LOUIS G, ZACHARY, JR., between $1.91 and $2.165 billion, lower than the outstanding debt of $2.281 billion. Also filing in support of the plan was JP MORGAN CHASE, which ripped AURELIUS for complaining about "self-inflicted losses."
Among the filings are a withdrawal of OAK RIDGE FM, INC,'s objection to the plan's confirmation; OAK RIDGE, licensee of WNOX-F/KNOXVILLE, had complained that CITADEL had missed two LMA payments and expenses for the Talk outlet. In addition VERIZON and its affiliates VERIZON WIRELESS and VERIZON BUSINESS GLOBAL have asked for an adjournment of their hearing addressing their objection to the cure amount that the plan offers them; the parties are in the midst of negotiations and agreed to a 30-day post-plan-confirmation additional negotiation period.
[Do you work for CITADEL? How do you feel about the future of the company after reorganization? Share your opinion below.]