Published on Tuesday, 13 April 2010 11:13
At the end of last month, Citadel Broadcasting filed motions with the Bankruptcy Court asking to extend its exclusive period for filing their Chapter 11 bankruptcy reorganization plans. The motions were heard late last week by a judge. This week, the Bankruptcy Court granted Citadel an extension until July 19, 2010 to propose a Chapter 11 plan.
This was done more as an insurance policy against possible delays in a confirmation of the plan by creditors. Citadel may not need to wait until July 19. The confirmation hearing for approval of their plan is set to take place on May 12. As of right now, the secured lenders and the creditors' committee are in general agreement with the plan, following a settlement improving treatment of unsecured creditors. The plan originally was negotiated with holders of 60 percent of the senior debt.
Citadel was also granted an extension for for assuming or rejecting property leases.
Citadel Broadcasting is based in Las Vegas, owns 224 radio stations and operates in over 50 markets. Here in Chicago, Citadel operates WLS-AM 890 and WLS-FM 94.7. Citadel picked up those two stations, along with 22 others, in a June 2007 merger transaction with the Walt Disney Company, where Disney shareholders received 57.5% of Citadel's stock and $1.35 billion in cash. This transaction made Citadel Broadcasting the third largest radio station owner in the US. Citadel also distributes syndicated programming to over 4,000 radio stations.