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America’s third-largest radio broadcaster, Citadel, filed for bankruptcy over the weekend.

“Citadel, which owns and operates 224 stations across the country, listed assets of about $1.4 billion and more than $2.4 billion in debt,” says the Wall Street Journal. “The company, like many print and broadcast media outfits, faces stiff competition, shifts in consumer habits and a harsh advertising climate.

It goes on, “Many radio companies have had trouble making money amid the shift toward Internet broadcasts but could be positioned for better results if they can find ways to harness that online growth.”

Citadel “sought bankruptcy to implement a pre-negotiated plan under which it has the support of 60 percent of its secured lenders, the company said in statement,” says Bloomberg News, adding:

“The plan will convert a $2.1 billion loan into a new $762.5 million term loan, giving senior lenders a pro rata stake, and 90 percent of the shares in the reorganized company.”

For now, “some media companies facing debt problems have been able to buy themselves some time by refinancing as the capital markets recover,” says the New York Times.

“Clear Channel Communications, Citadel’s biggest rival, sold $2.5 billion in bonds last week through its Clear Channel Outdoor affiliate, which will go toward paying down some of its debt. But many others are still trying to find ways to address their shrinking revenues.”

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