Monday, December 21, 2009

Wilmington Trust clarifies damaging statement from bankrupt Citadel (WL)

Their stock didn't take much of a hit on the news, but Wilmington Trust (WL) is out with a press release refuting claims that it is a creditor of Citadel Broadcasting, which filed for bankruptcy:

"News reports may have led some observers to believe that Wilmington Trust has loaned money to Citadel. In fact, Wilmington Trust is not a creditor of Citadel, despite the bankruptcy filing’s listing of Wilmington Trust among Citadel’s largest unsecured creditors. Wilmington Trust is serving as trustee and has no credit exposure, unsecured or otherwise, to Citadel. Through its CCS business, Wilmington Trust is paid a fee for providing trustee services. Citadel’s bankruptcy filing has no effect on Wilmington Trust’s balance sheet, credit quality, or financial condition."

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