SBS Reaches Deal to Restructure Debt, Files Chapter 11

RADIO ONLINE | Wednesday, April 8, 2026 | 3:43pm CT

Spanish Broadcasting System (SBS)

Spanish Broadcasting System (SBS) has entered into a restructuring support agreement with a group of bondholders holding more than 72% of its outstanding senior secured notes, outlining a plan to significantly reduce debt and reposition the company for long-term growth.

Under the agreement, existing common and preferred equity, along with the company's current notes, would be canceled. In exchange, noteholders would receive full ownership of the reorganized company, along with new secured notes and equity issued under a management incentive plan.

To implement the plan, SBS said it intends to file for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The company expects to continue normal operations during the process, including paying employees and vendors, supported by debtor-in-possession financing commitments from the supporting investors.

The restructuring is designed to reduce interest expense, extend debt maturities by more than four years, and improve liquidity. SBS said the added financial flexibility will support investment in local programming, talent, broadcast infrastructure, and its LaMusica digital platform, while strengthening its ability to serve advertisers and expand audience reach.

CEO Raul Alarcon will remain in his role and continue as chairman through the restructuring process. The company also promoted Richard D. Lara to chief operating officer while he retains his general counsel responsibilities.

The transaction remains subject to court approval and regulatory clearances, including from the FCC.