Citadel Broadcasting Co., the third-largest radio group in the United States, filed for Chapter 11 bankruptcy Sunday.
The company, which has stations in 25 states, listed liabilities of $2.5 billion on assets of $1.4 billion, according to court papers filed with the Southern District of New York.
Citadel has been saddled with debt for some time and it had been widely reported in recent months that the company could be headed toward bankruptcy.
More than 60% of the company’s secured lenders backed Citadel’s pre-negotiated bankruptcy, which will allow it to extinguish $1.4 billion of debt and convert its $2.1 billion secured credit facility into a new term loan.
According to Sunday’s filing, the three largest unsecured creditors were JPMorgan Chase (JPM, Fortune 500) (with an unspecified amount owed), Wilmington Trust Corp. (WL) (with a $49.2 million claim) and The Walt Disney Co. (DIS, Fortune 500) (with a claim of $11.2 million).
Citadel had reported a third-quarter loss of $21 million and a 14% drop in revenue for the three months ended Sept. 30. The company’s stock was delisted earlier in the year and last month Citadel warned, in a regulatory filing, that it expected sales would continue to decline through the end of the year.
The company comprises 165 FM stations and 58 AM stations. Programming includes syndicated radio properties like ABC News Radio, The Mark Levin Show and The Huckabee Report.
(Source: CNN)
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8 Responses
How’s this gonna affect operations? I’m sure that they’re gonna be on the air Monday.
I doubt that Mark Levin will be effected. While most talk shows are done on a barter type contract, ie, the former Curtis Sliwa Show, Mark, Sean and Rush are stictly “Pay for Commercials”. Even if Citadel goes out of business, there are plenty of companies that will pick up Mark’s show. Mark only went into the talk show business because Rush and Sean pushed him into it.
nothing to worry about. we all knew this was being planned. may have been too much debt from the purchase of all those ABC radio stations.
Thank me!!
Oh no! What am I going to do about entertainment and news? Poor Mark Levin!
So there you have it, another company walks away from 1.2 billion but immediately gets 2.1 billion in loans, while the hard working guy, misses a 20$ payment, and he can’t get a loan for a dollar for the next 7 years!!
This corruption needs to stop!!!
This isn’t the same Mark Levin that posts here is it?
This is something which was known for a while. I was surprised it took this long. Part of the problem was the debt incurred when they took over many of the ABC Radio Network Stations.
Thank me!
Oh wow! You really are the one and only Mark R. Levin! Hey Mr. Levin, I always go to the Mark Levin Fan website! I read Liberty and Tyranny!
G-d bless you!