Justice Sirikah

Citadel Broadcasting Corporation (OTCBB: CTDB) Offers Senior Lenders Debt-for-Equity Option

by Justice Sirikah September 21, 2009

  ctdb_logo.pngWith over 215 FM and AM radio stations in operation, the influence of Citadel Broadcasting Corporation (CTDB.ob, or OTCBB: CTDB) in over 50 markets across 27 states, including the District of Colombia, is quite awe-inspiring. But can the same be said of the condition of its financial records?

  Although managing to steer clear of a technical default on its debt Wednesday, with an outstanding $2 million interest payment, the broadcaster still faces a January 15 deadline to satisfy the terms of its senior debt calling for $150 million cash in hand. Owning up to its shortcomings in a recent filing, in which it reported $27.8 million in cash and over $2 billion in liabilities, the company said it is negotiating a debt-for-equity swap with its senior debt holders – JP Morgan Chase & Company (NYSE: JPM), General Electric Company’s GE Capital and ING Groep NV.

  Then again, it has been reported that the senior lenders are not agreeing on the amount of debt that could be converted to ownership entitlement in Citadel. On the other hand, the talks appears to have hit a snag as some lenders were unprepared for the latest rules imposed by the Federal Communications Commission to regulate intense holdings of media organisations. Even so, the firm has earlier on said it is also looking at “pre-package bankruptcy…and another amendment to the company’s credit agreement”.

  Citadel has posted a wide net loss of $758.7 million ($2.88 per share) for the second quarter ended June, against $251.6 million ($0.96 per share) lost in the same period in 2008. Its consolidated revenues during the period under review narrowed to $118.1 million, representing a 17 percent decline from $229.2 million realised in the tallying quarter of a year ago.
 At the time of writing, CTDB stock had slid 12 percent on the news to $0.059, from $0.067 the previous day.

  Reference:
http://www.citadelbroadcasting.com/

Comments 1

1. Guest
March 08, 2015, 07:00PM

Quotes I had 560 shares in citadel,with brokerage firm,they sAY IT WAS A WORTHLESS STOCK so they liquidated the stock and closed out my account,is this legal? what happened to my citadel 560 shares and certificates?

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