WLS-parent Citadel gets bankruptcy plan extension

As an insurance policy against a delay in confirmation of the reorganization plan, Citadel Broadcasting Corp. sought and received an extension until July 19 of the exclusive right to propose a Chapter 11 plan.

The confirmation hearing for approval of the plan is set for May 12. Citadel is a Las Vegas-based owner of 224 radio stations. In Chicago, Citadel owns WLS AM-890 and WLS FM-94.7.

The secured lenders and the creditors' committee are in agreement with the plan following a settlement improving treatment of unsecured creditors.

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.

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 New York (Manhattan).