NEW YORK – Citadel Broadcasting Corp., the parent company of local radio stations including WPRO-AM 630 and 92 Pro FM, filed for bankruptcy protection on Sunday.
The Las Vegas-based company, the nation’s third-largest station owner, said it had reached a deal with creditors to cut by more than half its $2.5 billion in debt, Bloomberg News reported.
“We are pleased with the support from the majority of our senior lenders, and we look forward to working with the remaining senior lenders and other stakeholders,” Citadel Chairman and CEO Farid Suleman said in a statement. He added that Citadel “will work to emerge from the restructuring process as quickly as possible.”
Citadel’s 244 radio stations and other business units will operate as usual in bankruptcy, funded by $36 million in cash on hand under a deal with secured lenders, Bloomberg said. The company blamed a slowdown in advertising caused by the recession for its bankruptcy.
“Citadel, like many radio, television and newspaper companies, has seen its revenue and profitability decline due to the downturn in advertising spending by companies particularly in the auto, banking and restaurant sector,” Chief Financial Officer Randy Taylor said in court papers filed in Manhattan on Sunday.
Citadel took on a significant amount of debt in 2006 to fund the purchase of Walt Disney Co.’s ABC Radio stations. It also lost two popular hosts in the late Paul Harvey and Sean Hannity, who switched to a Clear Channel Communications Inc. subsidiary.
In Rhode Island, Citadel owns six stations: WPRO-AM 630 and its simulcast station WEAN-FM 99.7; WPRO-FM 92.3; WPRV-AM 790; WWKX-FM 106.3; and WWLI-FM 105.1. The company also owns two New Bedford-based stations, WBSM-AM 1420 and WFHN-FM 107.1.
For the nine months ended Sept. 30, Citadel posted a $785 million net loss on revenue of $531 million. Asset impairment charges totaled $986 million.
Additional information is available at citadelbroadcasting.com.
