Employees of Citadel Broadcasting don’t have to worry about how to pay for Christmas dinner. The company has gotten the go ahead from the United States Bankruptcy Court for the Southern District of New York to make payroll and pay other routine bills.
The company announced that the court had granted all of the company’s “first day” relief motions under the Chapter 11 bankruptcy filing it made Sunday.
The court approval includes access to more than $36 million of cash on hand, as well as all cash generated from daily operations, which will be used to continue to satisfy Citadel’s obligations without interruption during the course of its restructuring.
Citadel said the approvals allow it to, among other things, pay pre-petition employee wages, salaries, health benefits and other employee obligations during its restructuring under Chapter 11. The company was also provided with authority to continue to honor its current customer programs. Citadel is authorized to pay ordinary course post-petition expenses without seeking court approval.
“We are pleased with the prompt action of the Bankruptcy Court in approving our first day motions and appreciate the support from our senior lenders in this restructuring process. The relief afforded by the Bankruptcy Court and our secured lenders will allow our stations and the network to continue business operations as usual,” said CEO Farid Suelman.
