WLS-parent Citadel seeks more control in bankruptcy

Although Citadel Broadcasting Corp. expects the reorganization plan to be approved at a May 12 confirmation hearing, the Las Vegas-based owner of 224 radio stations is taking no chances.

In an abundance of caution, Citadel wants an extension until July 19 of the exclusive right to propose a plan.

In Chicago, Citadel owns WLS AM-890 and WLS FM-94.7.

The secured lenders and the creditors' committee are on board with the plan. The exclusivity motion will be heard at an April 8 hearing.

Citadel, which operates in more than 50 markets, filed the original version of the plan on Feb. 3 to carry out agreement negotiated before the Chapter 11 filing in December.

There was a settlement improving the treatment of unsecured creditors. Citadel and subsidiaries listed assets of $1.4 billion against debt totaling $2.46 billion. It is the third-largest radio station owner in the U.S., with 166 FM and 58 AM stations. The 24 stations in large markets were acquired in a June 2007 merger transaction with Walt Disney Co., where Disney shareholders received 57.5 percent of Citadel's stock and Disney received $1.35 billion cash.

Citadel also distributes programming to 4,000 stations. The plan originally was negotiated with holders of 60 percent of the senior debt.

The case is Citadel Broadcasting Corp., 09-17442, U.S. Bankruptcy Court, Southern District of New York (Manhattan).