Radio industry highlighted cautiously in WSJ

"Heavy Debt, Fewer Ads Put Radio Firms in a Squeeze." Mounting debt and a sharp drop in advertising at many of the nation's radio broadcasters have led to a slashing of their valuations to fire-sale levels and intense competition with other media for ad dollars. Farid Suleman, chief executive of CDL describes current conditions as "absolutely the worst I've seen." The credit squeeze is limiting broadcasters' flexibility just as many of them seem likely to bump up against covenants that limit how much debt they can carry. And when some of them try to renegotiate terms with creditors, they may have a tough time bargaining their way out of trouble. Many companies are taking a cue from Clear Channel and considering privatization or even a sale to another company. [Wall Street Journal]