SBS Pursues Prepackaged Debt Restructuring, Hands Ownership To Creditors.

Spanish Broadcasting System has filed for Chapter 11 bankruptcy protection as part of a prepackaged restructuring agreement designed to cut debt and hand ownership of the Hispanic media company to its largest creditors.

The Miami-based broadcaster, one of the nation’s largest Spanish-language radio operators, filed the case Monday in U.S. Bankruptcy Court in Delaware after previously warning investors that it could not repay roughly $310 million in senior secured notes that matured March 1.

The restructuring follows an agreement reached in April with noteholders representing more than 72% of the company’s outstanding 9.75% senior secured notes due 2026. Those creditors include funds managed by Brigade Capital Management, subsidiaries of Man Group and Bayside Capital.

Under the proposed restructuring plan, existing common and preferred shares would be canceled, while noteholders would receive ownership of the reorganized company through a debt-for-equity swap. SBS said the process is expected to significantly reduce debt, lower interest costs and extend note maturities by more than four years.

In court filings, the company estimated both assets and liabilities at between $100 million and $500 million.

SBS said it expects to continue operating normally during the bankruptcy proceedings, including paying employees, vendors and programming expenses. The company also secured commitments for debtor-in-possession financing from supporting investors to provide liquidity during the Chapter 11 process.

Founded in 1983 by Raúl Alarcón Jr., SBS owns and operates Spanish-language radio stations in major Hispanic markets including New York, Los Angeles, Miami, Chicago and Puerto Rico. The company also operates the LaMusica digital platform and previously owned MegaTV stations.

The broadcaster has struggled with declining revenue and heavy debt loads in recent years amid broader pressure on the radio industry. Revenue fell to $31.3 million in the quarter ending Dec. 31, down from $35.8 million a year earlier, according to regulatory filings cited in reports on the bankruptcy.

SBS had been attempting to sell television assets to raise cash after an earlier MegaTV sale effort collapsed in 2023. In 2025, the company sold its Puerto Rico television station for $5.7 million as part of its deleveraging efforts.

The company said Chief Executive Officer Raúl Alarcón will remain in his leadership role during the restructuring. SBS also recently promoted General Counsel Richard Lara to chief operating officer as the company prepares to emerge from bankruptcy with a new ownership structure.