Owner and operator of various popular radio stations in major US cities including New York and Chicago, Citadel Broadcasting Corp., has reportedly filed for bankruptcy protection in Manhattan, succumbing under financial constraints, with a deal to shed $1.4 Billion worth of debt.

The firm has listed assets of $1.4 Billion against a total debt of $2.5 Billion in its Chapter 11 filing in the U. S. Bankruptcy Court. As per the court papers filed, a New York-based private equity company Forstmann Little & Co., is the owner of 29% of the firm's total common stock. Also, the filing covers nearly 50 units of the Las Vegas based broadcasting company.

As shared by Citadel, the firm has filed for bankruptcy to mainly implement a plan which has already been negotiated with all the major parties involved, and for which, the company has complete support of 60% of its secured lenders. The new 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% of the shares in the reorganized company".

"We are pleased with the support from the majority of our senior lenders, and we look forward to working with the remaining senior lenders and other stakeholders", said Citadel Chairman and Chief Executive Officer Farid Suleman.

In the latest quarter report, Citadel had reported a 14% decline in revenue.