According to a report posted on the Wall Street Journal website in the wee hours of Sunday morning, Citadel Broadcasting was all set to file a pre-packaged Chapter 11 petition in US Bankruptcy Court. As previously reported, the financial reorganization will slash the company’s $2 billion debt load, but leave the debt holders owning the company, with current shareholders wiped out.
According to the WSJ report, the deal cut with the debt holders would leave Citadel with about $762.5 million in debt. As of the end of Q3, Citadel reported senior debt of $2.056 billion and total liabilities of $2.479 billion. Sunday’s WSJ story repeated earlier reports that Citadel CEO Farid Suleman would continue to run the company under its proposed new ownership structure.
Check back to RBR-TVBR for complete details once a Chapter 11 filing is made.
RBR-TVBR observation: It has been painful to watch this slow-motion train wreck develop over the years. What is most sad is that the architect of this disaster will remain in place to likely run the company into the ground a second time. The employees of Citadel and the communities its stations serve deserve better.