Filing Alert: Spanish Broadcasting System Chapter 11

Update (May. 11, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Spanish Broadcasting System, Inc.

Spanish Broadcasting System, Inc. and its debtor affiliates⁽¹⁾, a Miami, FL-based Spanish-language media and broadcasting company, filed for Chapter 11 protection on May 11 in the U.S. Bankruptcy Court for the District of Delaware.

The company attributes its distress to a fundamental shift in audio consumption toward on-demand streaming and podcasting, which eroded core linear radio listenership and depressed local and national advertising revenues. This top-line contraction was compounded by escalating multi-platform technology, music licensing, and talent costs, alongside persistent declines in political ad spend across the company’s non-swing state footprint and early 2025 wildfire disruptions in the Los Angeles market. Burdened by an overleveraged capital structure that constrained necessary digital investment, the company ultimately defaulted on the March 1, 2026 maturity of its $310 million 9.75% prepetition senior secured notes, precipitating a forbearance agreement and subsequent prepackaged filing.

The prepackaged filing aims to effectuate a comprehensive balance sheet restructuring pursuant to a Restructuring Support Agreement (RSA) with an ad hoc committee holding over 90% of the company's funded indebtedness, including Brigade Capital Management, Bardin Hill Investment Partners, and Bayside Capital. The plan will deleverage the balance sheet by approximately $240 million, reducing funded debt to $70 million via the cancellation of the prepetition notes in exchange for new secured notes and 100% of the reorganized common equity. General unsecured creditors (GUCs), including roughly $15 million in trade payables, will remain unimpaired and be paid in full, while existing preferred and common equity will be cancelled. To fund operations through an anticipated FCC license transfer, the debtors have secured a $30 million term loan DIP facility—comprising of a $20 million base commitment and a $10 million accordion—backstopped by an ad hoc group of existing noteholders. The RSA contemplates a 55-day combined disclosure statement and confirmation timeline, with the effective date intentionally extended up to 180 days post-confirmation to accommodate requisite FCC change-of-control approvals.

The company reports $100 million to $500 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-10708.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Top Unsecured Claims

Key Parties

Counsel:

• Robert J. Dehney, Sr.
  Morris, Nichols, Arsht & Tunnell LLP
  Email: [email protected]

General Bankruptcy Counsel:

• Fried, Frank, Harris, Shriver & Jacobson LLP

Investment Banker:

• GLC Advisors & Company

Financial Advisor / CRO:

• Riveron Management Services, LLC (Jesse York)

Claims Agent:

• Kroll Restructuring Administration LLC

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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