The Delaware bankruptcy court confirmed Spanish Broadcasting System's pre-packaged Chapter 11 plan on July 1, 2026, leaving the cross-platform Spanish-language media company to clear a regulatory effective-date gate before emerging Confirmation OrderDkt. 156. The plan was confirmed over three rejecting classes through a section 1129(b) cramdown and reduces roughly $310 million of funded debt to $70 million of new secured notes, with noteholders taking all of the reorganized company's equity in a debt-for-equity swap; the effective date is contingent on Federal Communications Commission approval of the contemplated broadcast-license transfer of control.
SBS and its affiliate Mega Media Holdings filed their Chapter 11 petitions on May 11, 2026, after their 9.75% Senior Secured Notes matured on March 1, 2026 without a refinancing Chapter 11 Voluntary PetitionDkt. 1. The Miami-based broadcaster, which operates 17 radio stations across major U.S. Hispanic markets together with the MegaTV network, the AIRE Radio Networks, and the LaMusica streaming app, arrived with a pre-negotiated resolution: following a roughly thirty-day forbearance, the company executed a Restructuring Support Agreement in early April 2026 with holders of more than 90% of the senior secured notes, pre-soliciting votes for a plan that delivers noteholders their pro rata share of $70 million in new secured notes and 100% of the new common stock subject to a management incentive plan, while cancelling all existing preferred and common equity First Day DeclarationDkt. 5.
To fund the case, the debtors obtained a $30 million DIP term loan from Brigade Agency Services LLC, paired with use of cash collateral and adequate protection for the prepetition noteholders, on final court approval entered in early June 2026. The pre-packaged structure compressed the timeline: the disclosure statement and plan were filed alongside the petition, votes had been solicited prepetition, and the combined disclosure-statement and confirmation hearing concluded on June 25, 2026, yielding the signed confirmation findings within roughly seven weeks of the petition date.
The case now sits in a post-confirmation, pre-effective posture shaped almost entirely by the FCC licensing process rather than creditor conflict. Because the plan transfers control of broadcast licenses, the debtors anticipate effectiveness within 180 days of confirmation; to preserve operational and litigation optionality across that window, they moved on June 30, 2026 to extend the removal, plan-exclusivity, and lease assumption/rejection deadlines to December 7, 2026, with objections due July 14 Omnibus Extension MotionDkt. 154. Administrative, priority, and general unsecured claims are projected to be paid in full under the confirmed plan.
