Citadel Broadcasting files for bankruptcy after getting board approval to do so. Citadel is the third largest radio broadcaster in the United States, after having acquired Disney’s ABC Radio company in 2006. At that time, Radio was still booming and Citadel thought it was making the right decision going into debt for the acquisition. What a difference a day makes. The broadcasting giant has entered a pre-arranged bankruptcy with the support of its lenders, who Citadel owes an aggregate of over $2 billion UDS. Additionally, the company plans to restructure and swap a large part of their debt into equity in the newly structured Citadel. According to an article in the Wall Street Journal, the CEO, Farid Suleman, shall remain at the helm.
The Financial Express reported that the structured filing would enable Citadel to reduce its debt load to approximately $762.5 million. Although the company was successful in getting their pre-arranged bankruptcy approved, they will need to petition for more creditor support in court in order to get the reorganization plan approved by a judge.
K. Reilly
Good article. It does seem to stop. How many more bankruptcies are in store, and how many will actually come out in better shape?
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