New Delaware Chapter 11 Filing – LBI Media, Inc.
LBI Media, Inc., along with seventeen affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 12655). LBI Media—headquartered in Burbank, CA—owns or licenses twenty-seven Spanish-language television stations and radio stations, as well as the Spanish-language television broadcast network Estrella TV, for which LBI Media also produces original programming. According to the First Day Declaration, LBI Media has filed as a result of a debt overhand and continued litigation between its first lien lender, HPS Investment Partners, LLC, and an ad hoc group of its second lien noteholders. The First Day Declaration further explains that LBI Media enters chapter 11 having entered into a restructuring support agreement with HPS and will be filing a “toggle” plan that will provide for up to 75 days for LBI Media to conduct a marketing process. LBI Media is also seeking approval of up to $38 million in debtor-in-possession financing to be provided by HPS. Epiq Corporate Restructuring is the proposed claims and noticing agent. The cases have been assigned to the Honorable Christopher S. Sontchi.
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