The judge overseeing the plan to emerge from debtor-in-possession status submitted by Spanish Broadcasting System (SBS) has been given the green light, putting the wheels in motion for the company founded in 1983 by supermajority owner and equity interest holder Raúl Alarcón Jr. to reorganize SBS — with all of the company’s publicly traded shares going to its debtholders.
For Judge Brendan Linehan Shannon, the prepackaged Chapter 11 reorganization passed muster, with a Thursday hearing in Wilmington, Del., bringing affirmation to the plan.
SBS attorneys submitted the plan of reorganization on Tuesday (6/23), alongside important declarations of support from the debtors and other key parties.
On Wednesday, the final obstacle was removed — a withdrawal of an objection to the pre-packaged Chapter 11 reorganization plan.
Next is formal confirmation of the plan.
