The State of Michigan Department of Treasury has thrown a new wrench into the works as Citadel Broadcasting tries to get its revised bankruptcy reorganization plan confirmed so the company can emerge from Chapter 11.
According to the Michigan tax authority, Citadel’s Alphabet Acquisition Company subsidiary (through which it acquired the former ABC Radio) “failed to file its 2008 Michigan Business Tax return and remit the taxes, penalties, and interest due for the said period.
The Michigan Department of Treasury says the failure to file the delinquent tax return is a violation of federal law. “Debtor’s disregard of [the federal statute] raises a doubt as to whether debtor’s proposed plan is offered in good faith as required by [the federal bankruptcy statute],” the filing claimed.
The state taxing authority also objected to any order which would discharge Citadel’s corporate officers from individual responsibility for the corporation’s tax liability to the State of Michigan.
RBR-TVBR observation: A tempest in a tea pot, to be sure, but something else that Citadel has to deal with – as the lawyers rack up billable hours. The Michigan filing asks the bankruptcy court to deny the Citadel Modified Joint Plan of Reorganization, but we’re pretty sure they just want a check.