The nation’s third largest radio group, Citadel Broadcasting won court approval Monday (May 17) to exit bankruptcy, despite objections from a group of shareholders led by Aurelius Capital Partners.
Citadel’s senior lenders of $2.1 billion of secured debt will get a new loan of $762.5 million and 90 percent of the new company. Holders of unsecured claims will hold the remaining 10 percent of stock and receive $36 million cash. Equity holders receive nothing.
Farid Suleman, CEO of Citadel, will continue to run the company.
Citadel, saddled with $2.5 billion in debt, filed for Chapter 11 bankruptcy protection back in December.