LBI Media filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Alvarez & Marsal is serving as financial advisor to the company through the restructuring process.
LBU is restructuring in order to implement an agreement with 100% of the company’s senior lenders to reduce its debt by more than $350 million. LBI has also received a commitment for a new $38 million loan from its said lenders, which will support its operations during the restructuring process.
LBI will continue running its business in the ordinary course as a Spanish-language television and radio broadcaster and television network, allowing its popular programming to continue to be seen and heard by millions of viewers nationwide.
As such, the company has also filed a number of customary motions seeking court authorization to continue to support its business operations during the restructuring process, including the continued payment of employee wages and benefits without interruption. LBI intends to pay vendors and suppliers in full under normal terms for goods and services provided after the filing date.
Weil, Gotshal & Manges is serving as legal counsel to LBI, while Guggenheim Securities acts as investment banker.
