Citadel Reorganization Plan Approved By Court
May 17, 2010 at 7:47 PM (PT)
CITADEL BROADCASTING's reorganization plan was approved by Judge BURTON LIFLAND in U.S. Bankruptcy Court MONDAY (5/17). The judge said he will sign the order approving the plan after hearing objections from AURELIUS CAPITAL PARTNERS, the investor which recently bought shares in the company and challenged CITADEL's valuation by LAZARD LTD., along with VIRTUS CAPITAL LLC and the KENNETH S. GROSSMAN PENSION FUND. LIFLAND denied AURELIUS' attempts to delay the hearing further and to introduce testimony about the valuation from a witness.
The plan gives secured debt holders 90% of the reorganized CITADEL's shares and a $762.5 million loan, replacing $2.14 billion in debt. Unsecured debt holders will get 10% of the stock and $36 million in cash, while equity holders are wiped out in the deal.