The Citadel Broadcasting Corporation, one of US' largest radio broadcasters, filed for bankruptcy in New York on Sunday after agreeing to turn over control of the company to its creditors in exchange for reducing its debt.
The filing by the company, which owns 224 stations across the country and syndicates Don Imus's radio show, was not unexpected but does reflect the troubles plaguing the radio industry amid steep declines in advertising revenue and big debt loads.
The troubles of Citadel have been well documented. Citadel took on billions of dollars in debt in 2006 to finance its purchase of Disney's ABC Radio stations. But in the years that followed the deal, its revenues have plummeted as advertising dried up.
Citadel hired the investment bank Lazard and the law firm Kirkland & Ellis earlier this year to negotiate with the company's creditors, but the talks were contentious at times.