December 21, 2009 / 11:01 PM / 10 years ago

UPDATE 1-Citadel Broadcasting sees bankruptcy exit next yr

 * Citadel sees bankruptcy exit in 300 days - lawyer
 * Court approves company's requests to access its cash
 * Says has $36 mln in cash on hand today
 By Chelsea Emery
 NEW YORK, Dec 21 (Reuters) - U.S. radio broadcaster Citadel
Broadcasting Corp CTDB.OB could exit bankruptcy in just 300
days under its prenegotiated deal with lenders, a lawyer for
the company told a court on Monday.
 Citadel, which broadcasts the Don Imus "Imus in the
Morning" show with ABC Radio Networks, filed for bankruptcy
protection on Sunday, hurt by $2.08 billion in debt and a
decline in advertising by auto, banking and restaurant
companies. [ID:nN20207132]
 At the company's "first day" court hearing in U.S.
Bankruptcy Court in Manhattan on Monday Jonathan Henes, a
bankruptcy attorney at Kirkland & Ellis representing the
company said the company believes exiting bankruptcy protection
in the next 300 days is "doable" under its current plan.
 Judge Burton Lifland approved requests from Citadel to
continue to operate its cash management system, use its cash
collateral, and pay certain employee wages.
 The company has $36 million in cash on the books at
present, and projects it will have $63 million in cash in seven
weeks, a lawyer for the company told the court.
 "Cash is exactly what this company needs to stabilize
operations and continue business," Joshua Sussberg, another
Citadel attorney from Kirkland & Ellis, said at the hearing.
  Citadel, the third-largest U.S. radio broadcaster, said in
court documents that shareholders will be wiped out under the
proposed reorganization plan.
 The case is: In re: Citadel Broadcasting Corp, U.S.
Bankruptcy Court, Southern District of New York, No. 09-17442.
 (Reporting by Chelsea Emery, writing by Emily Chasan, editing
by Matthew Lewis)


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