Citadel Broadcasting Files Prepack Bankruptcy

Law360, New York (December 21, 2009, 2:07 PM EST) -- Reaching a deal with a majority of its senior secured lenders, radio group Citadel Broadcasting Corp. has filed a prepackaged bankruptcy petition that aims to eliminate some $1.4 billion in debt.

Filing for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York Sunday, Citadel Broadcasting said that under the terms of its prenegotiated financial restructuring, holders of senior secured claims will receive 90 percent of new common stock in the reorganized company.

The plan allows Citadel to convert $2.1 billion...
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