Expert Witness Network Blog

Broadcast Expert Witness to Weigh In On Citadel Bankruptcy

U.S. Bankruptcy Judge Burton Lifland said after a hearing that he will approve the reorganization plan submitted by Citadel Broadcasting in its Chapter 11 bankruptcy proceedings, BusinessWeek reports. Citadel’s plan had been facing objections by a shareholder group led by Aurelius Capital Partners, which said the company was undervalued by its bankers.

Aurelius and two affiliates bought significant stock in Citadel well after its December bankruptcy filing. Two other shareholders also protested the plan on the basis of the business valuation.

Lifland refused to allow opponents of the plan to have a media expert witness testify on the Citadel valuation, BusinessWeek reports, agreeing with Citadel that the proposed witness wasn’t an expert in broadcast. Lifland also declined to postpone the hearing while Aurelius came up with new expert testimony. Aurelius’ attorney did not comment to BusinessWeek on whether the group will appeal.

Citadel CEO Farid Suleman told the publication, "We’re glad it’s over and we can get on with running the company."

Citadel’s plan will put its secured lenders in control of 90 percent of the reorganized company, with the rest going to unsecured lenders. Stockholders will receive nothing.
 

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