Citadel files bankruptcy

[Bengalsfan]

How much longer before Cumulus and Clear Channel follow?

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3HYN5uP1E24&pos=3

 

[jmtillery]

It's all over the Wall Street Journal, All Access and several trade publications. Same as the other big media corporations, Citadel is highly leveraged in a down economy where radio advertising is off by as much as 25%. I'm sure we will soon see similar situations with the other "big" media companies.

 

[TheBigA]

I'd be surprised if Cumulus filed for bankruptcy. Their debt load is much less than Citadel, and they seem to be in better shape with their creditors. Just a year ago, they were even talking about going private.

 

[TheRealOtherNeil]

MSNBC is reporting that a bankruptcy judge has demanded that all True Oldies stations to flip to Urban AC or Smooth Jazz effective 1/1/10 in order to become more solvent.

Scott Shannon has been told to vacate his office by Monday at 9:00 am.

Connie Francis and Peter Noone are planning a protest march tomorrow at 10:00 am from Columbus Circle to the Russian Tea Room.

Randy Cooke is quoted as saying, "Not again!"

 

[jmtillery]

MSNBC is reporting that a bankruptcy judge has demanded that all True Oldies stations to flip to Urban AC or Smooth Jazz effective 1/1/10 in order to become more solvent.

Scott Shannon has been told to vacate his office by Monday at 9:00 am.

Connie Francis and Peter Noone are planning a protest march tomorrow at 10:00 am from Columbus Circle to the Russian Tea Room.

Randy Cooke is quoted as saying, "Not again!"

To quote Artie Johnson from the '60s comedy show "Laugh-In" - "Veeeeedy Iiiiiiiiiiiiintereeeeeeeesting!"

 

[jmtillery]

I'd be surprised if Cumulus filed for bankruptcy. Their debt load is much less than Citadel, and they seem to be in better shape with their creditors. Just a year ago, they were even talking about going private.

A smaller debt load will certainly go in Cumulus' favor and help out tremdously, especially if the debt-to-equity ratio is favorable to profitabilty. Going private certainly indicates the company is in decent financial shape if Cumulus is able to pull it off.

 

[Kent]

When it comes to Cumulus, the publicly traded side of it, at least, will probably be okay. That's good news to some and not to others. The publicly traded side of Cumulus bought most of its stations with a combination of stock and cash, the majority of which was stock. Cumulus has had a much tougher time expanding in the current economy since the stock isn't worth much, but it has a lot smaller of a debt load than many of the other large media companies. I'm not so sure, however, about the private side of the company, Cumulus Media Partners. Private equity is mostly behind it, and how well it does really depends on how much the private equity firms have on hand as well as what their lenders are thinking.

 

[littlejohn]

According to this morning's mullet wrapper, this cuts their debt from two billion four hundred million to under a billion and a half. And, according tio Mr Whipple, lease don't squeeze the Citadel stock!"

 

[jabba17]

I'd be surprised if Cumulus filed for bankruptcy. Their debt load is much less than Citadel, and they seem to be in better shape with their creditors. Just a year ago, they were even talking about going private.

A smaller debt load will certainly go in Cumulus' favor and help out tremdously, especially if the debt-to-equity ratio is favorable to profitabilty. Going private certainly indicates the company is in decent financial shape if Cumulus is able to pull it off.

They could pull a Cox and go private while the stock is cheap.