Spanish Broadcasting System (SBS) has agreed to pursue a prepackaged Chapter 11 bankruptcy under a Restructuring Support Agreement (RSA) with several of its major creditors, including funds and accounts managed by Brigade Capital Management LP, subsidiaries of Man Group plc, and Bayside Capital LLC.
The RSA, reached after negotiations with those creditor groups, outlines a consensual restructuring designed to reduce SBS’s debt burden and stabilize its financial position while allowing continued operation of its radio, television and digital assets. Under the plan, affected creditors have agreed to support the company’s Chapter 11 filing and the proposed confirmation schedule, reducing the risk of protracted litigation and business disruption.
SBS intends to file the prepackaged Chapter 11 petition promptly to implement the agreed terms. A prepackaged filing means that a majority of the company’s creditors have already voted to accept the restructuring plan, accelerating the bankruptcy process and limiting time in court. Company management says the approach is intended to preserve value for stakeholders, maintain normal operations and protect advertising and affiliate relationships.
SBS operates a network of Spanish-language radio stations and related media properties and has faced industrywide pressures including advertising weakness and streaming competition. Company executives and the creditor parties said they believe the prepackaged restructuring provides the most efficient path to reduce leverage, improve liquidity and position SBS for long-term stability.
A hearing to approve the filing timeline and related relief is expected after the petition is filed; further details on creditor treatment, the proposed capital structure post-restructuring and the timetable for emergence will be released as court documents become available.