Justice Sirikah

Chapter 11 Bankruptcy Filing Quite Inevitable: Citadel Broadcasting Corporation (OTCB: CTDB)

by Justice Sirikah November 9, 2009
3ctdb_logo.png  Remarking that all evidence is threatening to embroil the company into Chapter 11 bankruptcy protection, Citadel Broadcasting Corporation (OTCB: CTDB, or CTDB.ob) on Friday also said it turned in a third quarter net loss on a 14 percent revenue decline due to a weakened performance in its medium and small markets. However, the revenue decrease was partially counterbalanced by an 11.8 percent cutback in operating costs throughout the period, the broadcaster noted.

  In a 10-Q document the company announced registering a net loss of $21.3 million ($0.08 per share) in the third quarter, against $28 million ($0.10 per share) of net income turned in during the tallying quarter of 2008. Quarterly net revenues for the just ended July – September interval dipped to 183.8 million, compared to last year’s $213.9 million. But then the financial data also revealed that Citadel managed to slash operating costs for the recent period to $1.45.8 million from $168.7 million during the year ago quarter.

  The downfall of the consolidated revenues was essentially centred on the firm’s radio network operations – Citadel Media – which recorded $29.4 million, down 31.5 percent from $42.9 million for the same period the previous year. For the better part of the revenue drop Citadel laid the blame on the deprivation of the money-spinning Sean Hannity and Paul Harvey programmes which went off air. Solely, these two popular programmes explain $8 million of the business’ net revenue reduction.

  Meanwhile, for the first time in several filings with SEC, the company maintained a pessimistic tone on the possibility of striking an agreement with its lenders with regards to its current liabilities, thus making the option of bankruptcy filing foreseeable. Citadel reiterated that it does not expect to be in a position to satisfy a requirement of at least $150 million of cash on hand by January 15, next year.

  Part of the company’s statement reads: “Based on the current economic conditions and capital markets, the company does not expect to be able to meet its covenants under the Senior Credit and Term Facility as of January 15, 2010...The company is currently in discussions with its lenders regarding this matter, including the possibility of seeking relief through a Chapter 11 filing under the U.S Bankruptcy Code; however, there can be no assurance that any definitive agreement shall be reached”.

   If the company puts up with the bankruptcy option, the equity of its current shareholders would be eliminated. On this likelihood, CTDB stock got beaten down almost 60 percent to close Monday’s session trading at $0.05, from the prior $0.13.

Comments 3

1. Guest
August 14, 2008, 01:34PM

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2. Guest
June 21, 2008, 05:38PM

Quotes We have never received the binders Carolyn refers to above, black or otherwise.

My request is that we be given an option to receive prospectus and annual reports by e-mail. We just received 3 PIMCO Funds Annual Reports. I shutter to think how many trees were sacrificed to send these to us.

Another mailing we could receive by email is our monthly report of disbursements. Letters sent for our IRA distributions every month for the rest of our lives is so not environmentally responsible.

We are clients of Scott and Stringfellow in Asheville. Please say you'll implement this.

Ann Deupree

3. Guest
October 26, 2007, 01:31PM

Quotes Hi! I'm a client of Scott and Stringfellow in Greensboro. Although I am unsure of the exact nature of the relationship between your two companies, apparently Clearview supplies the checks and seven-ring binders for the accounts at Scott and Stringfellow. (Your address in Richmond appears is the return address of the box I just received.)

Anyway, the reason for my inquiry -- could you please offer some COLORS for the seven-ring binders? Black, black, black. How dismal. Even blue would be acceptable. But how about a print or some kind of nice design? Banking and checkwriting is such a dull activity at best -- it would be nice to at the very least have a nice color check book to use while performing the task(s). Plus it helps distinguish one account from another at a glance when customers have several different accounts, like I do.

Thanks for your time.

Resptfully submitted,

Carolyn Phillips
Greensboro, NC


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