R2 Cries Foul Over Citadel's Stock Grants To Execs

Law360, New York (October 11, 2010, 3:27 PM EDT) -- R2 Investments LDC has accused the formerly bankrupt radio firm Citadel Broadcasting Corp. of violating its restructuring plan by paying $110 million in equity to management as opposed to handing out longer-term stock options.

The stakeholder filed a motion in the U.S. Bankruptcy Court for the Southern District of New York on Wednesday asking Judge Burton R. Lifland to hold Citadel to the plan and compel the company to revoke the stock grants.

“This egregious payoff was not what creditors expected when they voted on the...
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