Court OKs Citadel First-Day Motions
December 23, 2009: Citadel Broadcasting reports that the U.S. Bankruptcy Court for the Southern District of New York has granted all of its first-day motions for relief. That means Citadel has the OK to use more than $36 million in cash on hand and cash from daily operations to meet its obligations and continue in business.
"We are pleased with the prompt action of the bankruptcy court in approving our first-day motions and appreciate the support from our senior lenders in this restructuring process," Citadel CEO Farid Suleman said. "The relief afforded by the bankruptcy court and our secured lenders will allow our stations and the network to continue business operations as usual."
As previously reported, Citadel filed for Chapter 11 bankruptcy protection over the weekend with a prepackaged deal that had the support of senior lenders holding more than 60 percent of its debt.
The company has been given the OK continue to pay wages, salaries, benefits, and other obligations to its employees as it restructures, and can pay ordinary expenses without seeking the court's approval.
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