Citadel Broadcasting Discloses Chapter 11 Plans
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In a 10-Q filing on Friday that disclosed Q3 financial data, Citadel Broadcasting revealed for the first time that bankruptcy may be on the horizon. "The company does not expect to meet its covenant requirements under the Senior Credit and Term Facility as of January 15, 2010," Citadel disclosed to the SEC.
"The company is currently in discussions with its lenders regarding this matter, including the possibility of seeking relief through a Chapter 11 filing," the filing continued.
Citadel has hired a financial advisor to assist in the evaluation of the company's options, "including a possible refinancing and restructuring of its capital structure and debt."
Citadel also disclosed that if it defaults on the notes, its debt may be accelerated, and the broadcaster "may not be able to satisfy these obligations, and the company would likely need to seek relief through a chapter 11 filing under the U.S. Bankruptcy Code."
