CITADEL is close to bankruptcy.
The broadcast behemoth that owns many ABC radio stations and the ABC Radio network; locally, #1 radio news-talkie KGO is owned by Citadel.
Federal rules require a company file its 10-Q report as all publicly-traded companies must.
There is a reason CEO Farid, (known in the biz as 'Fagreed') Suleman filed it on Friday evening just ahead of the weekend because it would be better if no one knew the blunt terms Citadel had to use to assess the prospect for bankruptcy.
More ominous: Citadel has only $26 million in cash on hand (as of September 30).
KGO, by all appearances, is in solid financial shape, but the impending BK by corporate daddy has some personnel feeling nervous. Earlier this year, the station said goodbye to longtime news anchor Greg Jarrett, (who since has landed at WGN, Chicago), reporter Greg Edmunds, (nearly 30 years at the outlet) and weatherman Leo Ciolino. In addition, news director Paul Hosley and executive producer Trish Robbins were also shown the door; all financially-related moves, although Ciolino was nearing retirement.
Currently, all KGO air-talent seem to be safe, although a few of the 'biggie$ status remains unclear. Morning king Ronn Owens is the highest-paid tonsil, (over $1 million) Owens is signed through 2011, but when Citadel files, what would be his status and will he get his money?
Owens has a "personal services" contract and e-mailed me earlier this year when I asked about the Citadel status, that he would not be affected. Although several biz analysts told me that the "PS" contract was irrelevant; Owens' would be treated like any other Citadel creditor. (Owens agent is Don Buchwald, who reps Howard Stern)
Either way, the mood inside 900 Front isn't rosy and how do I know? Because someone there told me. Another said that "major changes" would be forthcoming. Stay tuned.
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