Citadel Broadcasting to file for bankruptcy: Report

Citadel Broadcasting Corp is planning to file for bankruptcy as soon as Sunday.

Citadel Broadcasting Corp,the third-largest radio broadcaster in the US,is planning to file for bankruptcy as soon as Sunday,faced by a harsh advertising climate,media report says.

Quoting people familiar with the matter,the Wall Street Journal said,”Citadel Broadcasting Corp,the third-largest radio broadcaster in the US,plans to file for bankruptcy as soon as Sunday.”

“The deal would reduce Citadel’s debt load to about USD 762.5 million. The company will need to solicit more creditor support in court to get its reorganisation plan approved by a judge,” the newspaper said citing sources.

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Citadel has already received its board’s approval for the bankruptcy filing.

The radio broadcaster is expected to file a “prearranged” deal — a deal supported by many lenders,the daily said.

These lenders,who collectively owed USD 2-billion,plan to swap a big portion of their debt for equity in a reorganised Citadel,effectively handing them control,the WSJ added.

Citadel’s current Chief Executive Farid Suleman is likely to remain at the helm,after the the company emerges from Chapter 11 protection,sources told WSJ.

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Citadel loaded up on debt to finance its acquisition of Walt Disney Co’s ABC Radio stations in 2006,a time when radio was a booming industry.

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