On February 26, the owner of Liberman Broadcasting and the Estrella TV network asked the Delaware bankruptcy court overseeing its restructuring proceeding to enforce an automatic stay, per a January 30 motion.
Junior noteholders protested. The judge overseeing LBI Media‘s bankruptcy case just agreed with them.
In a blow to LBI’s quest to emerge from debtor-in-possession status, the privately held Burbank, Calif.-based Hispanic media company saw its motion for enforcement of an automatic Chapter 11 stay denied.
Why? The junior noteholders did not take any actions that violate the stay, the judge ruled.
As a result, the Official Committee of Unsecured Creditors, along with LBI Media, HPS Investment Partners, and Wilmington Savings Fund Society have all agreed to extend the “Challenge Period” through June 30.
March 12 also saw the withdrawal of claims filed by the Irving, Tex., and Era, Tex., school districts and two claims by Dallas County, Tex.
This came after actions taken March 11 from the Committee by way of a letter to the Hon. Christopher Sontchi and from LBI Media; the court sealed this documents.
As a result, a group of second-lien noteholders displeased at actions taken by LBI Media that involve HPS Investment Partners can continue their efforts in the Delaware Chancery Court.
RBR+TVBR RELATED READS: