Bondholders will receive the remaining 10

The Citadel Broadcasting Corporation is placed Sunday under the protection of the US bankruptcy law, the famous chapter 11 to restructure its debt and continue its operations. The third largest radio network us, who include 224 stations and broadcasts on some 4,000 affiliated radios, will consent to his creditors control of 90 of its capital in exchange for a reduction of 2.1 billion to $ 762,5 million in debt. Bondholders will receive the remaining 10. The plan has the support of 60 of the unsecured creditors. Yesterday, another network has also released its fate in the hands of justice: NextMedia Group which manages 36 local stations and awash, also, the weight of its debts.

"We will keep all our stations and continue to us," said CEO and "chairman" of Citadel Broadcasting, Farid Suleman. However, he stressed that fate in the long term for the radio network would depend on the health of the economy and the evolution of the advertising market. Last month, the Group announced a decrease of 14 of its quarterly revenues (in $ 183.8 million) and a 16 fall in profits (at $ 38 million).

Another problem, Citadel is heavily debt in 2006, still good advertising revenue, to redeem Disney year of ABC Radio stations. However, since the advertising bonanza gradually dried. "Citadel Broadcasting, like many companies of radio, television and press, has seen its turnover and profitability declined due to a decline in advertising spending, especially in the automotive and banking sectors, and restoration", said Chief Financial Officer, Randy Taylor. Hit by the recession in the same way as the rest of the American media, radio stations have seen their advertising revenues in 2008 declined by 9.4 to $ 17.4 billion, Citadel in documents addressed to the judge. The fall is even more severe this year, since it reached 22 on the first three quarters for the national market and 23 for the local market from 2008, according to the Radio Advertising Bureau. The decline from 2006 is 48.5 in the domestic market and 18 in the local market.

Nine out of ten Americans always listen to the radio, which allowed however to the sector to maintain its constant share of 20 of the advertising market despite increased competition new media on the Internet. Citadel is not the only radio network to experience difficulties. Its largest rival, Clear Channel Communications, sold the week last for $ 2.5 billion of bonds to honour some of its debts. But some signs predict better days on the air in 2010. Clear Channel and its advertising governance Katz Media Group come to show significant growth in advertising revenues on December and January, from last year. National advertising spots on the network sales have increased by 13.2 in December and should rise by 17.4 in January from January 2009. The local market recorded a modest growth of 1.4 in December, and between 5 and 6 in January. And analysts anticipate a while modest recovery for the whole of the sector - 1.5 at least in 2010 - but still resumed.