Judge Grants SBS Request To Extend Bankruptcy Deadlines As FCC Review Continues.

Spanish Broadcasting System has received court approval to extend several key Chapter 11 deadlines while it waits for federal regulators to approve the ownership changes required under its confirmed reorganization plan.

Delaware Bankruptcy Judge Brendan Shannon has signed an order granting SBS’s request to push several statutory deadlines to Dec. 7, giving the broadcaster additional time to complete its restructuring while the Federal Communications Commission reviews the transfer of control of the company’s broadcast licenses.

The move is largely procedural and is common in cases where a bankruptcy plan has already been confirmed but cannot become effective until regulatory approvals are received. By extending the exclusivity periods, SBS ensures no other party can attempt to propose a competing reorganization plan while the company waits for the FCC to complete its review. It also gives the company additional time to assume or reject commercial real estate leases. All of those deadlines had been scheduled to expire before the company expects to receive FCC approval needed to emerge from bankruptcy.

The ruling follows last week’s final confirmation of SBS’s prepackaged Chapter 11 plan, which will reduce the company’s funded debt from roughly $310 million to about $70 million and transfer ownership to its secured noteholders. Although the bankruptcy court has confirmed the restructuring, the plan cannot become effective until the FCC signs off on the transfer of the company's broadcast licenses.

In the motion approved by the court, SBS said the FCC review is expected to take “several weeks to a few months” after plan confirmation, making the deadline extensions necessary to prevent important bankruptcy deadlines from expiring before the company can complete its reorganization.

“The debtors do not expect to be able to consummate and go effective with plan for a number of weeks or months as they await FCC approval of the change of control contemplated by the plan,” the company said in the request.

Judge Shannon’s order authorizes the extensions through Dec. 7 and preserves SBS’s ability to seek additional extensions if the FCC review takes longer than anticipated.

The waiting comes after a rapid-fire move through the Chapter 11 process that began in April. The company expects the streamlined capital structure to free up resources for reinvestment across its core business. More than 90% of the company’s debt holders backed the restructuring before the bankruptcy filing, allowing SBS to pursue a prepackaged case designed to move through court in a matter of weeks. While the company must still wait for FCC approval before emerging from bankruptcy, the court’s order effectively locks in the financial restructuring that will leave SBS with a substantially lighter debt load and a new creditor-owned capital structure.

When completed, the restructuring will maintain current SBS leadership, with CEO Raúl Alarcón staying in place even as ownership shifts to creditors. But governance will ultimately reset, with a new board to be installed when the company eventually emerges from the bankruptcy process under terms outlined in the restructuring. General Counsel Richard Lara has also been named Chief Operating Officer as the company prepares for its next phase.