• The Wall Street Journal, Sunday, September 20, 2009 10:27 PM

Wall Street lenders are hitting roadblocks over U.S. media-ownership rules as distressed firms restructure debt by offering equity stakes. The lenders are tripping over the federal regulations as they find themselves the unexpected owners of several distressed radio, television and newspaper companies.

The issue has taken center stage at Citadel Broadcasting, as one of the U.S.'s largest radio broadcasters races to revamp its balance sheet. Citadel has offered senior lenders owed $2 billion -- including J.P. Morgan Chase & Co., General Electric Co.'s GE Capital and ING Groep NV -- a deal that would exchange a big chunk of debt for equity. In other restructurings, J.P. Morgan could end up a shareholder of Tribune and could take over Freedom Communications. It has already taken over Journal Register.

Read the whole story at The Wall Street Journal »