Citadel Broadcasting, NextMedia Group, Inc. and Heartland Publications, Inc. all filed pre-arranged bankruptcies yesterday and today. According to Reuters, in all cases the companies reached debt restructure agreements with lenders before filing.
Las Vegas-based Citadel Broadcasting, which owns and operates 224 radio stations, filed for Chapter 11 bankruptcy protection on Sunday. Its deal with 60 of its lenders will wipe out $1.4 billion of their debt and convert the rest into a new term loan of $762.5 million. The deal has to be approved by the court.
Colorado-based NextMedia, which owns 36 AM and FM stations, did it filing today. With a debt of $100 to $500 million, it will hand over control of its U.S. station operator and outdoor advertising company to certain creditors. The company plans to have a total of $128 million in debt after its reorganization.
Connecticut-based Heartland, which owns about 50 small newspapers, mostly in the East Coast, also filed for Chapter 11 today, with a restructuring plan that will cut its debt by more than half. In its filing, the privately-held Heartland reported $134 million in assets and $166 million in debt. The company’s top lender is GE Capital. If the pre-arranged deal is approved, AP reports General Electric would get a 90% stake in the company for agreeing to reduce Heartland’s debt.