Citadel Broadcasting to file for Chapter 11 bankruptcy

Filed under: Daily News |

The Wall Street Journal is reporting that Citadel Broadcasting Corp., the U.S.’s third-largest radio broadcaster, is preparing to file for bankruptcy by the end of the year.

Citadel operates six local radio stations, KATC Cat Country 95.1 FM, KCSF 1300 AM, KKFM Classic Rock 98.1 FM, KKMG 98.1 Magic FM, KKPK The Peak 92.9 FM and KVOR Talk Radio 740 AM.

How the bankruptcy filing might affect local stations is uncertain.

Under the deal presented to lenders this week, Citadel would file a “prearranged” Chapter 11 bankruptcy plan supported by many creditors. Lenders owed $2 billion would swap a substantial amount of that debt for around 99.5% of the equity in a reorganized company. The restructuring would give the group of some 90 lenders control of Citadel. Current shareholders, as in most bankruptcies, would be wiped out.

Click here to read the WSJ story.