Liberman Broadcasting Inc. has told the SEC that a $3.8M interest payment due 10/15/12 went unremitted, putting its entire debt structure at risk. However, the payment isn’t even overdue yet, technically.
Liberman, which owns and operates radio and television stations generally serving the US Hispanic population, and also counts the Estrella TV Network among its assets, officially has until 11/14/12 to pay the overdue bill.
If it misses that deadline, it said, “…the trustee for the Discount Notes or holders of at least 25% of the outstanding principal amount of the Discount Notes would be permitted under the terms of the Discount Notes Indenture to accelerate Holdings’ obligation to repay the Discount Notes, of which Holdings’ total outstanding obligations, including accrued and unpaid interest, was $72.2 million as of October 15, 2012.”
A number of other possibilities would be kicked into motion if that deadline is missed, including the fact that LBI would be in default of a 3/18/11 credit agreement.
The company is offering to exchange discount notes, which are due in 2013, for others that mature later in 2017.