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Tuesday, September 08, 2009 6:10:39 PM
Rainmakers Brass Balls Play for next Week: CTDB
If this is you when the stock your in has wild and volatile price swings, CTDB may not be a play for you.
You should probably stick with the happy safe little kool aid plays that give you that warm and fuzzy feeling....
For those of you who like it rough and wild and can stand taking a risk check this out.....
CTDB is late for a $2 million dollar interest payment, they can pay it until 9/15.....so before then something has to happen.
Citadel Broadcasting 4th largest radio broadcaster in Country trading for a nickel......because they have 23 million in cash and $2 billion in debt.....CEO said everything is on the table including a prepackaged Chapter 11. How many of these type stocks have we seen rally like crazy when they either work things out with their creditors or file Chapter 11's.....Very risky, highly speculative all or nothing kind of play.....just couldn't resist taking a shot with a short time window between now and the 15th. AXL comes to mind as one who rallied on BK speculation......Worst case CTDB becomes a Q stock and the Q stock groupies run the stock back up down the road.....key is take profits on any run just in case.
Here's recap of Wall Street Journal interview with CTDB CEO from the other day...
Citadel Broadcasting, for instance, got a waiver for its leverage requirements through the end of 2009. But the company skipped a $2 million interest payment on its subordinated debt due Aug. 15 and is negotiating with senior debtholders about "what the next step should be," says Citadel CEO Farid Suleman. "All options are on the table," including prepackage bankruptcy, debt restructuring and another amendment to the company's credit agreement.
Citadel Weighing Financial Options
September 2, 2009
According to a report in today's Wall Street Journal, Citadel Broadcasting is facing major issues paying off its debts, with bankruptcy even a possibility. Citadel has renegotiated its agreement with creditors twice in the past year, and skipped a $2 million interest payment that was due August 15. The company is negotiating with its senior debtholders about what happens next.
Citadel CEO Farid Suleman told the WSJ that the company may not meet some condititions that are coming up in January and that "all options are on the table." This could include "prepackage bankruptcy, debt restructuring, and another amendment to the company's credit agreement."
Citadel has $27.8 million in cash and more than $2 billion in debt according to the WSJ, and can also make its payment by September 15 without triggering a default.
Something is going to happen by a week from Monday.....one way or another it's going to be a volatile one........
If this is you when the stock your in has wild and volatile price swings, CTDB may not be a play for you.
You should probably stick with the happy safe little kool aid plays that give you that warm and fuzzy feeling....
For those of you who like it rough and wild and can stand taking a risk check this out.....
CTDB is late for a $2 million dollar interest payment, they can pay it until 9/15.....so before then something has to happen.
Citadel Broadcasting 4th largest radio broadcaster in Country trading for a nickel......because they have 23 million in cash and $2 billion in debt.....CEO said everything is on the table including a prepackaged Chapter 11. How many of these type stocks have we seen rally like crazy when they either work things out with their creditors or file Chapter 11's.....Very risky, highly speculative all or nothing kind of play.....just couldn't resist taking a shot with a short time window between now and the 15th. AXL comes to mind as one who rallied on BK speculation......Worst case CTDB becomes a Q stock and the Q stock groupies run the stock back up down the road.....key is take profits on any run just in case.
Here's recap of Wall Street Journal interview with CTDB CEO from the other day...
Citadel Broadcasting, for instance, got a waiver for its leverage requirements through the end of 2009. But the company skipped a $2 million interest payment on its subordinated debt due Aug. 15 and is negotiating with senior debtholders about "what the next step should be," says Citadel CEO Farid Suleman. "All options are on the table," including prepackage bankruptcy, debt restructuring and another amendment to the company's credit agreement.
Citadel Weighing Financial Options
September 2, 2009
According to a report in today's Wall Street Journal, Citadel Broadcasting is facing major issues paying off its debts, with bankruptcy even a possibility. Citadel has renegotiated its agreement with creditors twice in the past year, and skipped a $2 million interest payment that was due August 15. The company is negotiating with its senior debtholders about what happens next.
Citadel CEO Farid Suleman told the WSJ that the company may not meet some condititions that are coming up in January and that "all options are on the table." This could include "prepackage bankruptcy, debt restructuring, and another amendment to the company's credit agreement."
Citadel has $27.8 million in cash and more than $2 billion in debt according to the WSJ, and can also make its payment by September 15 without triggering a default.
Something is going to happen by a week from Monday.....one way or another it's going to be a volatile one........
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