Next Chapter 11 court date for Citadel – March 9.
Some creditors get to vote on the pre-arranged plan to trim the debt by two-thirds, to $762.5 million, but many don't. The followup court filings at the U.S. Bankruptcy Court show the secured creditors have "unimpaired status" - they're first in line and are already "deemed to accept" the terms of the package. While those in the class of "senior claims" and "general unsecured claims" are "entitled to vote", but their status is "impaired."
Secured lenders will wind up with 90% of the equity. Holders of unsecured claims are entitled to scrap over the remaining 10% or to take up to 5% of their claim in cash - though that amount is capped at $2 million. There's nothing in the documents about a change in management, so expect Farid Suleman to continue as the CEO. He's going to survive this.
