Citadel To File Chapter 11

Citadel Broadcasting plans to file Chapter 11 bankruptcy protection before the end of the year, the Wall Street Journal reports. The radio broadcaster is in talks with lenders over the prearranged bankruptcy plan which has lenders exchanging Citadel’s $2 billion in debt for about 99.5 percent equity in the reorganized company, the Journal said. The creditors have until Tuesday to accept the deal.

It was reported that JP Morgan Chase & Co and General Electric Co’s GE Capital, which hold about 40 percent of the debt, are on board with the plan.

If the deal goes through, Citadel Chief Executive Farid Suleman would likely remain in his post, heading the company’s network of 165 FM stations, 58 AM stations, and the ABC Radio Networks.