Citadel offered lenders debt for equity: report

(Reuters) - Citadel Broadcasting Corp (CTDB.OB) offered a deal to exchange a major part of its debt for equity to senior lenders owed $2 billion, including JPMorgan Chase & Co (JPM.N), GE Capital and ING Groep NV (ING.AS), the Wall Street Journal said, citing people familiar with the negotiations.

On Wednesday, Citadel faced a deadline to make a $2 million interest payment, but the status remained unclear, the paper added.

Discussions have slowed in recent days in part as some lenders have been caught off-guard by Federal Communications Commission rules intended to limit concentrated holdings of media firms, the people told the paper.

Citadel could not be immediately reached for a comment by Reuters.

In June, Citadel, which operates the ABC Radio Network, hired Lazard Freres as an advisor to evaluate options, including a possible refinancing and restructuring of its capital structure.

(Reporting by Chakradhar Adusumilli; Editing by Jon Loades-Carter)