Citadel Broadcasting Corporation (fka CTDBQ)

[Mikeed]

From Dow Jones

" A bankruptcy judge extended Citadel Broadcasting Corp.'s (CTDBQ) exclusive
control of its Chapter 11 case through July 19.

The extension approved Monday by Judge Burton R. Lifland of the U.S.
Bankruptcy Court in Manhattan gives the radio-station owner a safety net if it
fails to obtain approval of its Chapter 11 plan at a confirmation hearing
scheduled for May 12.

The company's exclusive right to file a restructuring plan was set to expire
on April 19. Without the extension, creditors or other parties could have
offered rival plans as Citadel worked to win court approval of its own.

Citadel warned that a lapse in its exclusive plan-filing period could result
in chaos.

If that were to happen, the company would be "assessing competing plans if
filed and contending with the destabilizing effect that such events would have
on their businesses, employees, vendors and customers," Citadel said in court
papers.

The company the extension "merely accounts for the situation where the plan
is not confirmed and additional time to submit an alternative Chapter 11 plan
of reorganization is necessitated."

Citadel is currently seeking creditor approval for a bankruptcy-exit plan
that would see senior lenders, led by J.P. Morgan Chase & Co. (JPM) and owed
about $2.1 billion, receive 90% of Citadel's new equity plus a $762 million
loan.

Under the plan, unsecured creditors, owed $343 million, will receive 10% of
the company's new stock plus a share of $36 million in cash.

Unsecured creditors' recoveries under the plan improved substantially after
they consented to a settlement agreement with the company.

Citadel said that settlement and the filing of the plan shows that it is
"working extremely hard to ensure their swift emergence from Chapter 11" and
that progress "more than warrants" an extension of exclusive control of the
case.

Citadel, which operates 224 radio stations across the U.S., filed for
bankruptcy protection last December, squeezed by a heavy debt load and a drop
in advertising revenue."