Spanish-language broadcasting company LBI Media has completed its reorganization plan and emerged from Chapter 11 protection.
The Burbank company, which does business as Liberman Broadcasting, filed with the U.S. Bankruptcy Court for the District of Delaware in April, hoping a balance sheet restructure would enable it to shed $350 million in debt. With help from HPS Investment Partners, which sponsored the reorganization plan in exchange for 100 percent of new equity interest in LBI, it has done just that.
“LBI Media has a terrific group of assets with exceptional potential. Completion of LBI’s financial restructuring provides a strong financial foundation and significant flexibility to grow the business,” Peter Markham, the company’s new chief executive said in a statement. “We will build on this … by deepening our engagement with consumers, enhancing the value we provide to our marketing partners and being even more of a resource for the communities we serve.”
Markham, formerly chief executive of Granite Broadcasting in New York, will also take a seat on LBI’s board of directors. Brian Kei, LBI’s chief financial officer, was named chief operating officer in addition to his current role.
New York law firm Weil, Gotshal & Manges served as legal counsel through LBI’s Chapter 11 reorganization. Alvarez & Marsal, also in New York, was LBI’s financial advisor, and Wiley Rein in Washington, D.C., was regulatory counsel.
LBI owns 10 television stations and 17 radio stations. It operates the Estrella TV network from its flagship station KRCA-TV in Burbank.