Report: Citadel Says All Options Are On the Table

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Citadel Broadcasting CEO Farid Suleman told the Wall Street Journal that the company might not be able to meet terms and conditions with lenders that become effective in January. "All options are on the table," including prepackage bankruptcy, debt restructuring, and another amendment to the company's credit agreement. Citadel has $27.8 million in cash, but more than $2 billion in debt.

So far, the radio broadcaster has renegotiated with creditors twice in 2009 and received a waiver on leverage requirements through 2009. Citadel also skipped a $2 million interest payment on subordinated debt due August 15. WSJ says the company is negotiating with senior debtholders about "what the next step should be," said Suleman. A payment made before September 15 will not trigger a default.