The third-largest radio group, Citadel Broadcasting Corp., received court approval last night to exit bankruptcy.
Shareholders objected who said the company is worth more than executives and bankers assert. U.S. Bankruptcy Judge Burton Lifland overruled objections by the shareholders.
Judge Burton Lifland will sign a confirmation order approving Citadel’s reorganization plan. He overruled objections by the shareholders.
1. Reorganization gives holders of $2.14 billion of secured debt a new $762.5 million loan and 90 percent of the shares of the reorganized company.
2. Holders of unsecured claims will receive the remaining 10 percent of the stock and $36 million in cash.
3. Equity holders will receive nothing.
RBR-TVBR note: To see how this mess came about reference the following reports in RBR-TVBR:
Citadel shareholder denies it violated bankruptcy court order