UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Amendment No. 1
Under the Securities Exchange Act of 1934
Citadel Broadcasting Corporation
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(Name of Issuer)
Common Stock, $0.01 par value
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(Title of Class of Securities)
17285T106
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(CUSIP Number)
David Metzman, Esq.
c/o Aurelius Capital Management, LP
535 Madison Avenue, 22nd Floor
New York, New York 10022
(646) 445-6590
with a copy to:
Jason Kaplan, Esq.
Schulte Roth & Zabel LLP
919 Third Avenue
New York, NY 10022
(212) 756-2000
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
April 21, 2010
------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7 for other parties
to whom copies are to be sent.
--------------------
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on following pages)
(Page 1 of 10 Pages)
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CUSIP No. 17285T106 SCHEDULE 13D Page 2 of 10 Pages
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------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Aurelius Capital Partners, LP
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | (b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
------------- ------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) | |
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------- ------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 0
----------- ------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED 6,408,141
----------- ------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
----------- ------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
6,408,141
------------- ----------- ------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,408,141
------------- ------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES | |
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
2.41%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
------------- ------------------------------------------------------------------
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CUSIP No. 17285T106 SCHEDULE 13D Page 3 of 10 Pages
---------------------------- ----------------------------
------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Aurelius Capital International, Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | (b) |X|
------------- ------------------------------------------------------------------
3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
------------- ------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) | |
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
------------- ------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 0
----------- ------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED 8,439,218
----------- ------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
----------- ------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
8,439,218
------------- ----------- ------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,439,218
------------- ------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES | |
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
3.18%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
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CUSIP No. 17285T106 SCHEDULE 13D Page 4 of 10 Pages
---------------------------- ----------------------------
------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Aurelius Convergence Fund, Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | (b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
------------- ------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) | |
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
------------- ------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 0
----------- ------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED 2,412,641
----------- ------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
----------- ------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
2,412,641
------------- ----------- ------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,412,641
------------- ------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES | |
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.91%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
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---------------------------- ----------------------------
CUSIP No. 17285T106 SCHEDULE 13D Page 5 of 10 Pages
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------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Aurelius Capital Management, LP
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | (b) |X|
------------- ------------------------------------------------------------------
3 SEC USE ONLY
------------- ------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
------------- ------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) | |
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------- ------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 0
----------- ------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED 10,851,859
----------- ------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
----------- ------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
10,851,859
------------- ----------- ------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,851,859
------------- ------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES | |
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
4.08%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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---------------------------- ----------------------------
CUSIP No. 17285T106 SCHEDULE 13D Page 6 of 10 Pages
---------------------------- ----------------------------
------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Aurelius Capital GP, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | (b) |X|
------------- ------------------------------------------------------------------
3 SEC USE ONLY
------------- ------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
------------- ------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) | |
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------- ------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 0
----------- ------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED 6,408,141
----------- ------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
----------- ------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
6,408,141
------------- ----------- ------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,408,141
------------- ------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES | |
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
2.41%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
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CUSIP No. 17285T106 SCHEDULE 13D Page 7 of 10 Pages
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------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
Mark D. Brodsky
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | (b) |X|
------------- ------------------------------------------------------------------
3 SEC USE ONLY
------------- ------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
------------- ------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) | |
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
------------- ------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 0
----------- ------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED 17,260,000
----------- ------------------------------------------------------
BY EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
----------- ------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
17,260,000
------------- ----------- ------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
17,260,000
------------- ------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES | |
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
6.49%
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14 TYPE OF REPORTING PERSON
IN
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---------------------------- ----------------------------
CUSIP No. 17285T106 SCHEDULE 13D Page 8 of 10 Pages
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ITEM 1. SECURITY AND ISSUER
This Amendment No. 1 (the "Amendment") amends the statement on
Schedule 13D filed on April 15, 2010 (the "Original Schedule 13D") relating to
the common stock, $0.01 par value (the "Common Stock"), of Citadel Broadcasting
Corporation, a Delaware corporation (the "Issuer"). The principal executive
offices of the Issuer are located at: City Center West, Suite 400, 7201 West
Lake Mead Blvd., Las Vegas, Nevada 89128. Capitalized terms used herein and not
otherwise defined in this Amendment have the meanings set forth in the Original
Schedule 13D. This Amendment amends Items 3, 4 and 5 as set forth below.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Item 3 of the Schedule 13D is hereby amended and restated in its entirety as
follows:
The Common Stock purchased by the Aurelius Funds was acquired with working
capital in open market transactions at an aggregate cost (excluding commissions,
if any) of approximately $1,348,879.13.
ITEM 4. PURPOSE OF TRANSACTION
Item 4 of the Schedule 13D is hereby amended and restated in its entirety as
follows:
The Aurelius Funds, which for the purposes of this Item 4 shall include
Aurelius Convergence Master, Ltd. and Aurelius Capital Master, Ltd., acquired
shares of Common Stock for investment in the ordinary course of business because
they believed that the shares, when purchased, were undervalued and represented
an attractive investment opportunity.
On December 20, 2009, the Issuer and certain of its affiliates
(collectively, the "Debtors") filed voluntary petitions in the United States
Bankruptcy Court for the Southern District of New York seeking relief under
chapter 11 of Title 11 of the United States Code (the "Bankruptcy
Case").
The Aurelius Funds have filed in the Bankruptcy Case a preliminary
opposition to confirmation of the Debtors' First Modified Joint Plan of
Reorganization (the "Plan"). This opposition rests on various grounds, most
fundamentally on the allegation that the Plan violates the absolute priority
rule by overpaying senior creditors and providing no distribution to
shareholders of the Debtors and that therefore the Plan is not confirmable under
bankruptcy law. In particular, it is the Aurelius Funds' view that the Plan
would convey value to the Debtors' prepetition lenders (the "Lenders") in excess
of the face amount of their claims (including alleged deficiency claims) against
the Debtors. The Plan provides that the Debtors' Lenders would receive over 90%
of new common stock of the Issuer and management would receive options
equivalent to up to 10% of new common stock under a management incentive
program, which could enrich the Debtors' management by more than $100 million.
The objection alleges that the Plan rests on a valuation of the Issuer that is
far below the reorganized Debtors' true value and is based on stale financial
projections which do not reflect the Debtors' recent performance or the marked
improvements in financial markets for broadcast companies. The Aurelius Funds
believe that the value of the Debtors is significantly greater than the value as
described in the Disclosure Statement of the Plan. The objection notes the
anticipation of filing a further objection and reserves rights in relation to
seeking a continuance of the Plan's confirmation hearing. The Aurelius funds
have also requested discovery related to their objection.
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CUSIP No. 17285T106 SCHEDULE 13D Page 9 of 10 Pages
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The Aurelius Funds intend to pursue and prosecute the objection, described
above, and may file related pleadings, respond to pleadings filed by other
parties, discuss the formulation of alternative plans with other parties, serve
and prosecute discovery and respond to the same, appeal any adverse decisions
and respond to any appeals, and more generally become actively involved in the
Bankruptcy Case, with the goal of protecting and maximizing the value of
the Aurelius Funds' respective investments.
To the extent permitted by applicable law, rules and regulations, the
Reporting Persons may seek to influence the outcome of the Bankruptcy
Case, including, among other things, through (i) direct and/or indirect
communications with participants in the Bankruptcy Case and (ii) direct
and/or indirect communications with other persons, including other stockholders
or creditors of the Issuer.
Except as set forth herein or as would occur upon completion of any of the
actions discussed herein, none of the Reporting Persons has any plans or
proposals which relate to, or could result in, any of the matters referred to in
paragraphs (a) through (j), inclusive, of the instructions to Item 4 of Schedule
13D. The Reporting Persons may, at any time and from time to time, review or
reconsider their position and/or change their purpose and/or formulate plans or
proposals with respect thereto and may (i) acquire additional shares or
securities of the Issuer, (ii) dispose of any or all of their securities of the
Issuer, (iii) enter into or withdraw from legal proceedings, if any, and/or (iv)
enter into privately negotiated derivative transactions with institutional
counterparties to hedge the market risk of some or all of their positions in the
securities of the Issuer, depending upon the factors described below and/or
other investment considerations. The Reporting Persons disclaim all duties or
obligations, if any, to other stakeholders in the Issuer. For the avoidance of
doubt, the Reporting Persons do not have any current intention to change or
influence the control of the Issuer. The Debtors have alleged in the Bankruptcy
Case that the Reporting Persons have violated an order limiting the rights
to acquire the Issuer's stock and have sought to force the Reporting Persons to
sell their shares; it is the Reporting Persons' belief that these allegations
are without merit and they have filed a response to such allegations.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Item 5(c) of the Schedule 13D is hereby amended and restated in its entirety as
follows:
The Aurelius Funds entered into transactions in the Common Stock since
the filing of the Original Schedule 13D which are set forth on Schedule A. The
Aurelius Funds are the only Reporting Persons to have effected transactions in
the Common Stock since the filing of the Original Schedule 13D.
---------------------------- ----------------------------
CUSIP No. 17285T106 SCHEDULE 13D Page 10 of 10 Pages
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Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: April 23, 2010
AURELIUS CAPITAL PARTNERS, LP AURELIUS CAPITAL INTERNATIONAL, LTD.
By: Aurelius Capital GP, LLC, By: Aurelius Capital Management, LP,
its General Partner solely as investment manager and not
in its individual capacity
By: /s/ Mark D. Brodsky
-------------------- By: Aurelius Capital Management GP, LLC,
Name: Mark D. Brodsky its General Partner
Title: Chairman
By: /s/ Mark D. Brodsky
--------------------
Name: Mark D. Brodsky
Title: Chairman
AURELIUS CONVERGENCE FUND, LTD. AURELIUS CAPITAL MANAGEMENT, LP
By: Aurelius Capital Management, LP, By: Aurelius Capital Management GP, LLC,
solely as investment manager and not its General Partner
in its individual capacity
By: /s/ Mark D. Brodsky
By: Aurelius Capital Management --------------------
GP, LLC, its General Partner Name: Mark D. Brodsky
Title: Chairman
By: /s/ Mark D. Brodsky
--------------------
Name: Mark D. Brodsky
Title: Chairman
AURELIUS CAPITAL GP, LLC /s/ Mark D. Brodsky
-------------------
MARK D. BRODSKY
By: /s/ Mark D. Brodsky
--------------------
Name: Mark D. Brodsky
Title: Chairman
SCHEDULE A
TRANSACTIONS IN THE COMMON STOCK BY AURELIUS CAPITAL PARTNERS
SINCE THE FILING OF THE ORIGINAL SCHEDULE 13D
Unless otherwise indicated, all trades were effected in the open market through
brokers.
Date of Transaction Shares Purchased (Sold) Price Per Share ($)* Price Range ($)(1)
------------------- ----------------------- ------------------- ------------------
4/15/2010 411,014 0.2730 N/A
4/19/2010 (148,508) 0.3100 0.30 - 0.32
4/22/2010 (14.851) 0.3400 N/A
* Excluding commissions.
(1) The price reported in the column Price Per Share ($)* is a weighted average
price if a price range is indicated in the column Price Range ($). These shares
were purchased/sold in multiple transactions at prices between the price ranges
below. The reporting persons will undertake to provide to the staff of the
Securities and Exchange Commission, upon request, full information regarding the
number of shares sold at each separate price.
TRANSACTIONS IN THE COMMON STOCK BY AURELIUS CAPITAL INTERNATIONAL
SINCE THE FILING OF THE ORIGINAL SCHEDULE 13D
Unless otherwise indicated, all trades were effected in the open market through
brokers.
Date of Transaction Shares Purchased (Sold) Price Per Share ($)* Price Range ($)(2)
------------------- ----------------------- ------------------- ------------------
4/15/2010 588,986 0.2730 N/A
4/19/2010 (195,579) 0.3100 0.30 - 0.32
4/22/2010 (19.558) 0.3400 N/A
* Excluding commissions.
(2) The price reported in the column Price Per Share ($)* is a weighted average
price if a price range is indicated in the column Price Range ($). These shares
were purchased/sold in multiple transactions at prices between the price ranges
below. The reporting persons will undertake to provide to the staff of the
Securities and Exchange Commission, upon request, full information regarding the
number of shares sold at each separate price.
TRANSACTIONS IN THE COMMON STOCK BY AURELIUS CONVERGENCE FUND
SINCE THE FILING OF THE ORIGINAL SCHEDULE 13D
Unless otherwise indicated, all trades were effected in the open market through
brokers.
Date of Transaction Shares Purchased (Sold) Price Per Share ($)* Price Range ($)(3)
------------------- ----------------------- ------------------- ------------------
4/19/2010 (55,913) 0.3100 0.30 - 0.32
4/22/2010 (5.591) 0.3400 N/A
* Excluding commissions.
(3) The price reported in the column Price Per Share ($)* is a weighted average
price if a price range is indicated in the column Price Range ($). These shares
were purchased/sold in multiple transactions at prices between the price ranges
below. The reporting persons will undertake to provide to the staff of the
Securities and Exchange Commission, upon request, full information regarding the
number of shares sold at each separate price.