On Sunday, Citadel Broadcasting, the nation’s third largest radio station operator, filed for Chapter 11 bankruptcy protection after reaching a pre-negotiated restructuring agreement with creditors that hold 60% of the company’s secured debt. Citadel owns and operates 224 AM and FM radio stations that include KABC-AM in Los Angeles, WLS-AM in Chicago, and WPLJ-FM in New York City. New York’s WABC-AM, which is owned by Citadel, is the home of ABC Radio News and also hosts several syndicated radio personalities, including Don Imus and Rush Limbaugh. In documents filed with the U.S. Bankruptcy Court for the Southern District of New York, Citadel listed assets of $1.4 billion against debts of $2.46 billion. Sources indicate that much of that debt burden is attributable to Citadel’s $2.7 billion purchase of ABC Radio in 2007. The company has also been hit hard by declining ad revenues. The agreement with secured lenders will enable Citadel to erase $1.4 billion in debt and to convert $2.1 billion of secured credit into a new term loan of $762.5 million. Secured creditors, which include JP Morgan Chase, would emerge with control of 90% of new common stock in the post-bankruptcy entity. The remaining 10% of common stock shares would be reserved for unsecured creditors, who may choose to receive 5% of their claim in cash (up to $2 million) or 10% of their claim in new common stock. Creditors have also agreed to allow Citadel to use $36 million in cash on hand and cash flow from operations to finance restructuring and to continue the company’s operations during the Chapter 11 process.