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Tuesday, February 9, 2010

Citadel's next court date: Tuesday, March 9

The bankruptcy court filings continue to add details to the picture – some creditors don’t even get to vote on the package that’s already been accepted by the secured creditors and which gives them 90% of the equity of company when it emerges from Chapter 11. Various classes of unsecured creditors will can accept parcels of the remaining 10% or take up to 5% of their claim in cash (although that’s “capped” at $2 million). Citadel will carry just one-third the debt, with a new credit facility of $762.5 million. The secured lenders are apparently agreeing to keep CEO Farid Suleman in place.

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