Citadel Says Bankruptcy Exit is ''Doable'' in 300 Days

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Citadel Broadcasting could exit Chapter 11 in less than a year, or about 300 days, under its pre-negotiated deal with lenders, a Citadel attorney told a bankruptcy court in Manhattan on Monday. Citadel filed for protection on Sunday, declaring $1.4 billion in assets and $2.48 billion in debt. The broadcaster noted that cash flow has been affected by a decline in advertising by auto, banking and restaurants.

Attorney Jonathan Henes, a bankruptcy attorney at Kirkland & Ellis, said the company believes exiting bankruptcy protection in the next 300 days is "doable" under its current plan.

Judge Burton Lifland approved requests from Citadel to continue to operate its cash management system, use its cash collateral and pay certain employee wages. The company has $36 million in cash on the books at present, and projects it will have $63 million in cash in seven weeks.

"Cash is exactly what this company needs to stabilize operations and continue business," attorney Joshua Sussberg, also from Kirkland & Ellis, said.