The shareholders of the stock are the ones left holding the bag.
The banks don't want to own Citadel's radio stations and the assets will not be liquidated. The company *may* seek Chapter 11 bankruptcy protection to reorganize those assets, in effect, holding creditors off (the big banks) within days or, possibly, a few weeks. They have huge debts to pay this year and an operation to keep afloat with contracts (Imus, Hannity, Levin etc.)
Internally, it has nothing to do with how Citadel / ABC operates, as they have considerable revenues still coming in, even in a depressed advertising market and there is considerable value attached to the current assets.
However, for future "expansion" and as a protection against a long term advertising slump that will affect the bottom line in time, it's the stockholders who, at the penny stock price of $.09 a share ... will get no value whatsoever for their stock which, two years ago, was valued at $22 a share.
Now, that stock is worthless.
But ... internally ... the stations keep running as normal, the cuts keep coming to insure that the investor outrage is kept to a minimum roar, and life will go on.
In time, Citadel *may* sell select clusters for cash-flow reinforcement .. whether Atlanta will be one of those, or New York, Chicago, Detroit, etc. is an unknown and a likely unknown for a long time , as Chapter 11 bankruptcy has no effect on the outcome of anything except to protect Citadel / ABC from demanding creditors ... banks and shareholders.
Sell all of Citadel Broadcasting? Unlikely -- too much debt that needs to be negotiated and/or paid before a legitimate "deep pockets" investor would buy the properties at a fair market value at this time.
Hold off on the dream of buying at pennies on the dollar those famous WLS, WABC, WJR, KABC or KGO microphones for your collection. They aren't for sale ... yet. The creditors will get them first.
