Report: Citadel preps bankruptcy.

story by Inside Radio


The Wall Street Journal says Citadel has circulated a bankruptcy reorganization plan to its lenders and the company could file Chapter 11 by month's end. Lenders have until Tuesday to sign the deal, which would cut its $2 billion debt to $760 million. Shareholders would see their ownership stake wiped out. The paper says several large banks have already thrown their support behind the pre-arranged bankruptcy.


Under the tentative deal, CEO Farid Suleman would reportedly remain in place. In an exclusive Inside Radio interview last week, Suleman promised a restructuring will occur “sooner rather than later.” He called "anything that has the 'B' word" a "last option" but vowed if it happened it will have “zero effect” on the company’s operation or its employees, and won’t lead to asset sales. “That hasn’t happened up until now — and will not happen in the future” he said.