Spanish Broadcasting System is in the confirmation runway for a prepackaged deleveraging case: final DIP and cash-collateral authority has been served, plan-supplement materials are on file, and the next major event is the June 25, 2026 confirmation hearing. The debtors filed chapter 11 on May 11, 2026 after their $310 million of 9.75% senior secured notes matured on March 1, 2026, followed by a forbearance period and an April restructuring support agreement with more than 90% of noteholders backing a prepackaged balance-sheet restructuring First Day DeclarationDkt. 5.
The case was filed as a controlled, lender-supported reorganization rather than an open-ended sale case. The RSA-backed path would cut funded debt from $310 million to about $70 million through a debt-for-equity exchange, cancel existing preferred and common equity, issue new secured notes and new common stock to existing noteholders, and preserve a sale-pivot mechanism if a higher-value transaction emerges First Day DeclarationDkt. 5. The chapter 11 petitions commenced the Delaware cases for SBS and affiliates, with the debtors seeking to maintain operations across their radio, television, digital and events businesses while pursuing confirmation of the prepackaged plan Voluntary PetitionDkt. 1.
The financing posture has moved from first-day liquidity to final-approved case funding. Kroll’s June 11 service affidavit confirms service of the final order authorizing postpetition financing, cash-collateral use, priming liens, superpriority claims, adequate protection, stay modification and related relief . The plan mechanics are also being papered for emergence: the June 11 plan supplement includes governance documents, new debt instruments, rejected-contract schedules, restructuring transaction steps and reorganized-board information tied to the joint prepackaged plan .
Near term, the case is focused on contract treatment and confirmation. The debtors served procedures for assumption of executory contracts and unexpired leases, including a June 18, 2026 assumption-objection deadline and cure/rejection-claim mechanics keyed to the effective date Contract Assumption Notice Service AffidavitDkt. 122. If confirmation proceeds on schedule, the remaining gating item after confirmation is expected to include FCC-related approvals for the broadcast-license ownership transfer contemplated by the restructuring First Day DeclarationDkt. 5.
