Spanish Broadcasting System is moving forward with a prepackaged Chapter 11 bankruptcy filing under a Restructuring Support Agreement with a group of major lenders, a step the company says will strengthen its balance sheet and position it for long-term growth.
The agreement is backed by funds and accounts managed by Brigade Capital Management, subsidiaries of Man Group, and Bayside Capital, which together hold more than 72% of the outstanding principal on SBS’s 9.750% Senior Secured Notes due 2026.
Under the terms of the deal, those noteholders will receive 100% of the equity in the reorganized company, subject to a new management incentive plan and the issuance of new secured notes.
SBS said the restructuring will “significantly” reduce debt, lower interest expense and extend the maturity of its obligations by more than four years, while also improving liquidity. The company expects the streamlined capital structure to free up resources for reinvestment across its core business.
That includes increased spending on local programming, on-air talent and broadcast infrastructure, as well as continued expansion of its LaMusica digital platform and other growth initiatives.
“With greater financial flexibility and a simplified capital structure, the Company is expected to be better positioned to expand audience reach, support advertisers, and deliver compelling content across on-air and digital platforms,” SBS said in announcing the agreement.
Leadership continuity is also part of the plan. CEO Raúl Alarcón will remain in his role and continue as Chairman through the restructuring process. The company said a new board of directors will be appointed following emergence from Chapter 11 in accordance with the agreement.
At the same time, SBS is elevating Richard D. Lara to Chief Operating Officer. Lara will retain his duties as General Counsel while taking on expanded operational oversight as the company navigates the restructuring and prepares for its next phase.
The prepackaged filing allows SBS to move through bankruptcy with lender support already secured, typically enabling a faster and more predictable restructuring process compared to traditional Chapter 11 cases.
The company says the goal is clear: emerge with a healthier balance sheet and renewed focus on growth in both broadcast and digital audio.
