LBI Media announces confirmation of third amended reorganization plan

By Caroline Salls

Pittsburgh, April 17 – LBI Media, Inc.’s third amended plan of reorganization was confirmed Wednesday by the U.S. Bankruptcy Court for the District of Delaware, according to a news release.

The company said it expects to complete its balance sheet restructuring and emerge from Chapter 11 within the next several months, subject to regulatory approval.

Under the terms of the plan, which LBI said is supported by all of its major creditor groups and sponsored by HPS Investment Partners, LLC, the company will eliminate roughly $350 million of debt from its balance sheet and HPS will receive 100% of the new equity interests in the company.

General unsecured and ongoing trade creditors are expected to receive significant recoveries on account of their claims.

Holders of holding company unsecured notes and intermediate holding company unsecured notes will receive a share of cash.

Holders of ASCAP/BMI settlement claims will receive a share of a settlement claim recovery pool.

Holders of existing LBI parent interests will receive no distribution.

Debtor-in-possession financing claims will either be converted into exit financing or paid in full in cash.

Weil, Gotshal & Manges LLP is serving as legal counsel to LBI; Guggenheim Securities is serving as investment banker; Alvarez & Marsal is serving as financial adviser; and Wiley Rein LLP as regulatory counsel.

LBI Media is a Burbank, Calif., owner and operator of Spanish-language radio and television stations. The company filed bankruptcy on Nov. 21 under Chapter 11 case number 18-12655.

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