Citadel Broadcasting Corp. says in an SEC filing that it has reached a settlement with bondholders who have been battling in court with the company over whether last year’s acquisition of ABC Radio via a merger made Citadel’s bonds immediately due and payable. Under terms of the ABC deal, Citadel still has to get Disney’s consent to the settlement, but it looks like the litigation is going to be wrapped up. The settlement will have Citadel offer to buy back up to 55 million in face value of the notes at 90 cents on the dollar and issue amended notes due 2011 for all that are tendered in excess of that threshold. Proceeds from asset sales, on a formula spelled out in the settlement, will be used to buy back more of the notes.
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