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Citadel files for Chapter 11

Published on 21 Dec 2009 under category: legal

Citadel Broadcasting has filed for bankruptcy protection.

The radio broadcaster made the application for Chapter 11 over the weekend.

As part of a pre-arranged deal, the company could see its $2.1 billion (£1.3 billion) credit facility transferred into a new loan which would reduce its debts.

The firm is reported to have debts of around $2.5 billion, around $1.4 billion of which would be paid off if the deal is given the green light.

In the application, Citadel listed assets of approximately $1.4 billion.

It is thought that around 60 per cent of the company's shareholders support the plan.

Farid Suleman, chairman and chief executive officer of the firm, said in a statement: "We are pleased with the support from the majority of our senior lenders, and we look forward to working with the remaining senior lenders and other stakeholders."

The news comes after the Wall Street Journal reported earlier this month that Citadel was set to file for bankruptcy before the end of the year.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.