Citadel Broadcasting Company has now filed its plan to emerge from Chapter 11 bankruptcy protection as a new company with new owners – its former creditors. The plan is pretty much what the company said was coming when it filed Chapter 11 in December.
Senior lenders, led by JPMorgan Chase, will own 90% of the new Citadel. The lenders will also receive pro rata shares of a new senior loan in the amount of $762.5 million. That will wipe out $1.4 billion of pre-bankruptcy debt – along with all of the value of its public stock.
Lower-ranking creditors will have the option to take some of the remaining 10% of new shares or cash, although the cash payout portion is limited.