Latest News 2009 December Citadel Broadcasting Filing for Chapter 11

Citadel Broadcasting Filing for Chapter 11

According to several media outlets, Citadel Broadcasting is on the verge of filing for Chapter 11 bankruptcy.  Several sources claim the company will file by the end of 2009.

Sources told the Wall Street Journal that Citadel's plan to file for Chapter 11 would cut the company's debt from $2 billion to $760 million - a drastic difference.  However, the catch is that if Citadel were to file for bankruptcy, its current shareholders would lose all of their stocks.

The deadline for Citadel to sign off on the plan has been set for December 15, 2009.  In order for the deal to pass, two-thirds of the company's shareholders would have to grant approval. 

The Wall Street Journal claims that current CEO, Farid Suleman, would most likely remain in charge of the company and the broadcaster would be owned by 90 of its lenders, including GE Capital and JP Morgan Chase & Co.

Planning to file for Chapter 11 bankruptcy?  If so, click here to find a bankruptcy lawyer!