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Tuesday, February 2, 2010

Citadel faces its creditors in court again on Wednesday

The February 3 session in a downtown Manhattan federal bankruptcy court is mostly routine, to authorize Citadel to conduct ordinary business such as paying wages, medical benefits, taxes, insurance, utilities,and talent fees and obligations due to affiliates. There are also the applications to retain service providers such as attorneys Kirkland and Ellis, re-structuring advisors Alvarez and Marsal, and accountants and auditors Deloitte & Touche. A more critical court date for the company that’s in Chapter 11 bankruptcy protection is a month away, on March 3. That’s when the various sides will discuss the debtors’ motions regarding the cash collateral, protecting the “pre-petition secured parties”, and the treatment of common stockholders. March 3 is also when the parties will discuss in a courtroom the debtors’ desire to employ Lazard & Freres as financial advisor and investment banker.

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