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Citadel is officially bankrupt

D

Deleted User

http://www.fmqb.com/article.asp?id=1633661

(fair use snip of article)

"Citadel Broadcasting has filed for bankruptcy, turning over control of one of the country's largest radio owners to its creditors. As per a report earlier this month, Citadel has indeed filed for Chapter 11 and will hand over the reigns to the company in exchange for shrinking its debts."


Merry Christmas.... how many more radio people will be out of jobs today?
 
Today, the morning hosts on WBMW/Eastern CT in the 8:30 newscast actually did a story about Citadel's bankruptcy. The female host read the details then commented, "Citadel owns stations in New London and Providence." To which the male host replied, "We are not one of them!"
 
Nothing. At least not now. It's a fiscal reorganization to appease the banks who now have 95% control -- not a dismantling of the cluster or radio stations. Changes? Probably not for awhile, if at all. If the "operational cash flow" is there, it will have no affect. As Suleman says, "It's business as usual." Citadel needed to unload debt and gave away the company. The banks have other more important things to consider with Citadel, not Providence.
 
oaktree said:
As Suleman says, "It's business as usual."
Click to expand...

...and there's the rub. Fagreed thinks this is just another corporate manuever, when he's the problem. The entire company is now less than what the sale of one of their stations would bring in the current market. The first thing the court must DEMAND of Citadel is that they get rid of Fagreed, and quickly (and without any kind of severance or bonus...no rewards whatsoever for what he has done).
 
Most radio stations, like a lot of newspapers, are in severe fiscal pain compared to where they were 5 or 10 years ago....but they're nowhere near as bad off as a lot of people like to think they are when you just look at income and expenses. What's killing a lot of these behemoths is the crushing debt load they assumed in the process of becoming those behemoths.

If Citadel magically got rid of most or all of that debt load (bankruptcy, anyone?) then they'd actually be in relatively decent shape, finances-wise. Not "good" shape, but "decent".

The $64 million dollar question is whether the creditors of Citadel that're gonna get screwed by this bankruptcy will accept it. Any one of them could file a lawsuit and try to force the company to sell off assets instead of accepting the pennies on the dollar they'd get otherwise. Whether or not that lawsuit is successful...and it probably wouldn't be...a major lawsuit like that can really hurt Citadel as it'll leave the entire company in limbo for months or years...right at a time when they can ill afford it.
 
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