The Wall Street Journal reports that Citadel Broadcasting Corp., owner of San Francisco’s KGO-AM 810 and KSFO 560, is discussing with its creditors a “pre-arranged” Chapter 11 filing that would reduce the company’s debts from $2 billion to $760 million.

The bankruptcy would wipe out individual shareholders, whose shares are currently worth about 5 cents each. That’s down from $16 in 2004.

The article notes: “As bad as things are, Citadel has outpaced rivals this year. Its revenue through the end of September dropped 14.7%. Clear Channel’s revenue, meanwhile, slid 19.2%, while CBS Radio decreased 23.2%.”

The word locally is that both KGO-AM and KSFO are among the few bright spots in the company, which has about 4,000 employees and 243 stations including the former ABC Radio O&Os such as KABC-AM Los Angeles, WABC-AM New York and WLS-AM Chicago.

Creditors have until Tuesday to approve the bankruptcy plan.

Bay Area Media News


  1. Farid Suleman should be sacked. He'll leave the shareholders with worthless paper and keep his job, with a fat salary and perks.

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