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LBI Media third amended reorganization plan effective as of Oct. 15
By Caroline Salls
Pittsburgh, Oct. 15 – LBI Media, Inc.’s third amended plan of reorganization took effect on Tuesday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.
The plan was confirmed on April 17.
“LBI Media has a terrific group of assets with exceptional potential,” newly appointed chief executive officer Peter Markham said in a news release. “Completion of LBI’s financial restructuring provides a strong financial foundation and significant flexibility to grow the business.
“The ownership team is committed to the long-term success of LBI Media and the continued expansion of its platform targeted to the growing U.S. Hispanic market.
“We move forward well positioned for the future and with the resources to pursue new opportunities.”
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 served as legal counsel to LBI; Guggenheim Securities served as investment banker; Alvarez & Marsal served 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, 2018 under Chapter 11 case number 18-12655.
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