Disney Stock/Citadel Bankruptcy Filing?

[keishashadow]

Did anybody else get a notice from legal firm re Citadel Broadcasting bankruptcy filing?

As i recall somehow we wound up with some shares via Disney stockholding...can't remember exact scenario (a merger perhaps?)

Anyway, I've read thru it & don't believe any action is necessary on stockholder's part, sound right?

 

[Chuck S]

You are correct that we somehow received Citadel as part of our Disney stock, perhaps a spin off stock. In 2003 it was selling for about $15 to $20, but has been less than $1 for some time. It is currently about a nickel.

I did receive the notice.

Does anyone know the exact history, and how many shares of Citadel a Disney Stockholder received when it was issued?

I'm moving this over to the Commuity Board, as it really isn't a DVC issue.

 

[Micca]

The only action Citadel stockholders need to take is the disposal of the certificates which will not be worth the paper they are printed on. Bird cage liner perhaps?

 

[keishashadow]

The only action Citadel stockholders need to take is the disposal of the certificates which will not be worth the paper they are printed on. Bird cage liner perhaps?

ow, that hurt

sorry, chuck, wasn't sure where to post this.

guess once the bankruptcy is finalized we'll receive official notice for tax purposes (loss deduction)? im happy to say we never took a hit like this before so im clueless as to protocol.

 

[PatsMom]

Calculating your cost basis in the Citadel shares could be difficult. If I recall correctly, slightly over half of Citadel was distributed to Disney shareholders as part of the Citadel acquisition of Disney's ABC Radio stations.

The stock is trading over the counter (under $1.00 per share). Instead of waiting for it to be declared worthless, if you own enough to make it worth the brokerage commissions, you could sell it. Then you don't have to wait for a determination that the stock is worthless to claim the loss on your income tax.

 

[keishashadow]

thanks for the info, don't know if it's still trading or not...will pass it along to the mr

 

[PatsMom]

The stock trades over the counter with a last price of $0.0465 per share. 52 week high is around $0.21. Trading symbol is CTDB (might be CTDBQ - usually companies in bankruptcy get a Q at the end of the ticker).

The advantage to selling is that it can avoid having to make a determination on when the stock is worthless. Rules for that aren't as easy as you might think and it could take a while to get done. Frequently the shareholders get nothing but sometimes they get shares in the reorganized company. Depends on the details of the bankruptcy. But bondholders, secured debt holders, and preferred stock owners would get priority over common stock holders in a bankruptcy case. If you can sell it now, you can take the loss on your 2010 taxes. If you have no capital gains to offset, you can offset $3,000 of ordinary income.

 

[Best Aunt]

Here's what I think happened for the spinoff:

On 06/12/2007, Disney spun off ABC Radio Holdings, Inc. For every 1 share of Disney stock you held, you received about 0.0768 shares of ABC Radio Holdings, Inc.

Then all shares of ABC Radio Holdings, Inc. were exchanged for shares of Citadel Broadcasting Corp. For every 1 share of ABC Radio Holdings you had, you received 1 share of Citadel Broadcasting Corp.

Your old Disney cost basis x 1.35% = your Citadel cost basis.

Fractional shares were not issued. They were sold for you. You would have received a check for them. For example, if you had 1.5 shares of Disney stock you would have ended up with 1.5 shares of Citadel. You would have received a stock certificate for 1 share and cash for the sale of the 0.5 shares.

 

[keishashadow]

lol so we have a whopping 1 share...wonder what the mr did with the check for the rest

 

[Chuck S]

I guess with 150 shares of Disney, receiving .0768 share of ABC Radio, that would be about 11 shares of Citadel. So nothing to get too worked up about.

 

[Simba's Mom]

Did anybody else get a notice from legal firm re Citadel Broadcasting bankruptcy filing?

As i recall somehow we wound up with some shares via Disney stockholding...can't remember exact scenario (a merger perhaps?)

Anyway, I've read thru it & don't believe any action is necessary on stockholder's part, sound right?

Thanks so much for letting me know why I got it. Yes, I got the notice about Citadel filing for bankruptcy. However, there was no letter or anything and I stood there puzzled-"how do I know this 'Citadel' company?" I didn't even remember that it tied into my Disney stock. Thanks for clearing this up for me!

 

[BunsenH]

Somehow I ended up with 13 shares of Citadel. Sold them last March for $0.45/share. A loss of $59. That implies that the original worth was about $4.50/share.

Yeah! I lost less than someone else!

 

[keishashadow]

Somehow I ended up with 13 shares of Citadel. Sold them last March for $0.45/share. A loss of $59. That implies that the original worth was about $4.50/share.

Yeah! I lost less than someone else!

talk about power of positive thinking. I got stuck with a reverse split on a REIT that had made money, i just got greedy & hung on too long thinking it'd come back I'll never live that one down with the mr; now i have one to fling back @ him!

 

[mominwestlake]

Thanks so much for letting me know why I got it. Yes, I got the notice about Citadel filing for bankruptcy. However, there was no letter or anything and I stood there puzzled-"how do I know this 'Citadel' company?" I didn't even remember that it tied into my Disney stock. Thanks for clearing this up for me!

We were also puzzled but glad that it's cleared up now. However, I don't recall getting the shares of Citadel. Did you all get actual paper certificates.

 

[Cheshire Figment]

At the time of the spinoff, in June 2007, I had 548 shares of Disney and got 42 shares of Citadel. My records show the value for Citadel (42 shares) at that time was $270.90 for me.

If you have not done any checking, you can go to https://isd.bnymellon.com/isd/faces/jsp/index.jsp where there should be an account for you which shows your stock position in Citadel. My 42 shares right now have a total value of $1.97.

Depending on the results of the bankruptcy court, the shares will probably become worthless and you will then have a writeoff (on Schedule D) of you 2010 Income Tax return.

 

[keishashadow]

thanks for the link

 

[kevin jackson]

But what triggered the spinoff in 2007?

 

[shazan]

Does anyone have Citadel Broadcasting which Disney spunoff in June 2007 and which went bankrupt in June 2010. This stock presumably now is worth nothing even though new stock in the company is now $37 a share. Does anyone have an idea what the original cost basis of Citadel would have been in the 2007 spinoff????

 

[Cheshire Figment]

See my Post #15 for cost basis.

 

[shazan]

Sorry--how do I find Post15?