LBI Media, Inc. announced it is pursuing a financial restructuring in order to implement an agreement with 100% of the Company’s senior lenders to reduce LBI’s debt by more than $350 million. LBI has also received a commitment for a new $38 million loan from its senior lenders, which will support the Company’s operations during the restructuring process. HPS Investment Partners is named as DIP Agent in court documents. 

LBI will continue running its business in the ordinary course as a leading Spanish-language television and radio broadcaster and television network, allowing its popular programming to continue to be seen and heard by millions of viewers nationwide.  

To implement the restructuring, LBI and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company has filed a number of customary motions seeking court authorization to continue to support its business operations during the restructuring process, including the continued payment of employee wages and benefits without interruption. The Company expects to receive court approval for these requests shortly.  The Company also intends to pay vendors and suppliers in full under normal terms for goods and services provided after the date hereof.  

Weil, Gotshal & Manges LLP is serving as legal counsel, Guggenheim Securities, LLC is serving as investment banker, and Alvarez & Marsal North America is serving as financial advisor.