BURBANK, Calif.--(BUSINESS WIRE)--LBI Media, Inc. and its affiliates (“LBI” or the “Company”) today received approval of its Third Amended Plan of Reorganization (the “Plan”) from the United States Bankruptcy Court for the District of Delaware. The Company now expects to complete its balance sheet restructuring and successfully emerge from chapter 11 within the next several months, subject to regulatory approval.
Under the terms of the Plan, which is supported by all of the Company’s major creditor groups and sponsored by HPS Investment Partners, LLC (“HPS”), the Company will eliminate approximately $350 million of debt from its balance sheet and HPS will receive 100% of the new equity interests in the Company. The Company’s general unsecured and ongoing trade creditors are expected to receive significant recoveries on account of their claims against the Company.
LBI commenced its chapter 11 process on November 21, 2018, to undertake a balance sheet restructuring and eliminate a substantial portion of debt to position LBI for long-term success. The Company has continued to operate as usual throughout the restructuring.
Weil, Gotshal & Manges LLP is serving as legal counsel to LBI; Guggenheim Securities is serving as investment banker to LBI; Alvarez & Marsal is serving as financial advisor to LBI; and Wiley Rein LLP as regulatory counsel.
Additional information regarding LBI’s restructuring is available at https://dm.epiq11.com/case/LBM. LBI has also established a telephone hotline and e-mail address to respond to inquiries from interested parties regarding the restructuring. The telephone hotline is (818) 729-5300. The e-mail address is LBIMedia@epiqglobal.com.
About LBI Media
LBI is the largest privately held, minority-owned Spanish-language broadcaster in the United States, with ten television stations and seventeen radio stations operating in top U.S. Hispanic markets. LBI operates the EstrellaTV Network, Don Cheto Radio Network, Fenomeno Studios MCN, Que Buena Radio and La Raza Radio. The Company produces over 50 hours of original television programming at its Burbank Television Studios each week. The EstrellaTV® programming catalog consists of over 7,500 hours of original, Spanish-language television programming in genres including talk, drama, comedy, variety, reality, music and more. To learn more about LBI Media and see company updates, please visit www.lbimedia.com.
Forward-Looking Statements
This release may contain forward-looking statements relating to future financial results, business expectations and business transactions. Statements that are not historical fact are forward-looking statements. Certain of these forward-looking statements can be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “estimates,” “assumes,” “may,” “should,” “could,” “shall,” “will,” “seeks,” “targets,” “future,” or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, and our actual results, performance or achievements could differ materially from future results, performance or achievements expressed in these forward-looking statements. Such statements include, but are not limited to, statements relating to the potential transactions contemplated by the Chapter 11 bankruptcy filing and the Plan, descriptions of management’s strategy, plans, objectives, expectations, or intentions and descriptions of assumptions underlying any of the above matters and other statements that are not historical fact.
These forward-looking statements are based on the Company’s current beliefs, intentions and expectations and are not guarantees or indicative of future performance, nor should any conclusions be drawn or assumptions be made as to any potential outcome of any proposed transactions the Company considers. Risks and uncertainties relating to the proposed restructuring include: the success of the Plan and motions filed by the Company, the ability of the Company to successfully execute the transactions contemplated by the Plan without substantial disruption to its business; and the effects of disruption from the proposed restructuring making it more difficult to maintain business, financing and operational relationships, to retain key executives and to maintain various licenses and approvals necessary for the Company to conduct its business.
The above factors, risks and uncertainties are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond the Company’s control. New factors, risks and uncertainties emerge from time to time, and it is not possible for management to predict all such factors, risks and uncertainties. These forward-looking statements speak only as of the date such statements were made, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in underlying assumptions or otherwise.
