Citadel goes Chapter 11

The long-expected bankruptcy filing for Citadel Broadcasting came today.

Documents filed in U.S. Bankruptcy Court in New York by the Las Vegas-based company list $1.4 billion in assets and more than $2.4 billion in debt, according to the Wall Street Journal.

The nation’s third-largest radio broadcaster operates 224 stations, including Erie’s WRIE (1260), WQHZ-FM (102.3), WXKC-FM (99.9) and WXTA-FM (97.9), and in 2007 absorbed most of the ABC Radio Network and many of ABC’s radio stations. (Pittsburgh ESPN sports-talker WEAE and ABC’s radio news department were not included.) Citadel also provides programming to 4,400 affiliates.

Citadel is seeking court approval to reorganize under Chapter 11 of U.S. Bankruptcy Code. The company has proposed swapping $2 billion in debt to its creditors in exchange for giving them control.

The deal, if approved by the court, would reduce Citadel’s debts to about $762.5 million, according to the Journal. Citadel has struggled financially for nearly two years; in February, the company was delisted from the New York Stock Exchange after the price of its shares fell to less than a penny, and many personalities heard on Citadel’s music networks have been laid off.

Citadel’s largest creditors include ABC’s parent company, The Walt Disney Co.; Delaware bank Wilmington Trust Co.; and JP Morgan Chase & Co.