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Citadel Noteholders Allege Default Over ABC Buy
February 27, 2006 at 3:42 PM (PT)
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CITADEL says that it has received a notice of default from an attorney representing parties who own 31% of the company's 1.875% convertible subordinate notes due 2011. The letter claims that CITADEL's purchase of/merger with ABC RADIO constitutes a "fundamental change" as defined in the agreement governing the notes and would trigger a clause that would let the noteholders force the company to buy back some or all of the debt at full principal amount plus interest. CITADEL said in a release that it will "vigorously defend itself" in the matter.

