Hispanicize Wire News

LBI Media Reaches Agreement to Pursue Financial Restructuring to Reduce Debt and Strengthen Competitive Position

LOS ANGELES, CA — November 21, 2018— (HISPANICIZE WIRE) — LBI Media, Inc. ("LBI" or the "Company") today 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. 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.

Additional information, including court filings and other information related to the proceedings, is available from a website administered by our claims agent, Epiq, at https://dm.epiq11.com/LBIMedia.

Advisors

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.

Forward-Looking Statements

This release may contain forward-looking statements relating to future financial results, business expectations and business transactions. Statements that are not historical fact are forward-looking statements. Certain of these forward-looking statements can be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “estimates,” “assumes,” “may,” “should,” “could,” “shall,” “will,” “seeks,” “targets,” “future,” or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, and our actual results, performance or achievements could differ materially from future results, performance or achievements expressed in these forward-looking statements. Such statements include, but are not limited to, statements relating to the potential transactions contemplated by the Chapter 11 bankruptcy filing and the Joint Chapter 11 Plan of Reorganization of LBI Media, Inc. and Its Affiliated Debtors (the “Plan”) filed therewith, descriptions of management’s strategy, plans, objectives, expectations, or intentions and descriptions of assumptions underlying any of the above matters and other statements that are not historical fact.

These forward-looking statements are based on the Company’s current beliefs, intentions and expectations and are not guarantees or indicative of future performance, nor should any conclusions be drawn or assumptions be made as to any potential outcome of any proposed transactions the Company considers. Risks and uncertainties relating to the proposed restructuring include: the success of the Plan and motions filed by the Company, the ability of the Company to comply with the terms of the restructuring support agreement (the “RSA”) described in the Plan; the ability of the Company to successfully execute the transactions contemplated by the RSA without substantial disruption to its business; and the effects of disruption from the proposed restructuring making it more difficult to maintain business, financing and operational relationships, to retain key executives and to maintain various licenses and approvals necessary for the Company to conduct its business.

The above factors, risks and uncertainties are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond the Company’s control. New factors, risks and uncertainties emerge from time to time, and it is not possible for management to predict all such factors, risks and uncertainties. These forward-looking statements speak only as of the date such statements were made, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in underlying assumptions or otherwise.

About LBI Media, Inc.

LBI Media is the largest privately held, minority-owned Spanish-language broadcaster in the United States, with ten television stations and seventeen radio stations operating in top U.S. Hispanic markets.  LBI Media operates the EstrellaTV Network, Don Cheto Radio Network, Fenomeno Studios MCN, Que Buena Radio and La Raza Radio.  The Company produces over 50 hours of original television programming at its Burbank Television Studios each week.  The EstrellaTV® programming catalog consists of over 7,500 hours of original, Spanish-language television programming in genres including talk, drama, comedy, variety, reality, music and more. To learn more about LBI Media and see company updates, please visit www.lbimedia.com.