Judge approves SBS Chapter 11 plan, clearing path to debt overhaul

A Delaware bankruptcy judge approved Spanish Broadcasting System’s Chapter 11 reorganization plan Thursday, clearing the company’s principal court hurdle in a fast-track restructuring that will cut its debt by more than three-quarters and hand ownership to its creditors.

Judge Brendan Shannon approved the plan during a 50-minute hearing, after SBS revised its proposal to address objections from the U.S. government and SoundExchange. The formal confirmation order still must be finalized, but the ruling puts the company on track to emerge from bankruptcy once it completes remaining conditions, including regulatory approvals.

The plan will reduce SBS’s funded debt from roughly $310 million to about $70 million.

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