LBI Media Holdings, Inc. Misses Interest Payment
October 22, 2012 at 3:57 AM (PT)
LBI MEDIA HOLDINGS, INC. has informed the SEC in a Form 8-k filing that it has missed an interest payment on its 11% Discount Notes due 2013. The semi-annual interest payment of $3.8 million was due on OCTOBER 15th.
The company is within the 30-day grace period provided under the indenture governing the notes, and the missed deadline does not, the company says, qualify as an event of default if the payment is made in the grace period. If the payment is not made by NOVEMBER 14th, the noteholders will be able to accelerate the company's obligation to repay the total outstanding obligations, including accrued and unpaid interest, which totaled $72.2 million as of OCTOBER 15th and the nonpayment will constitute an event of default and would trigger default clauses under other notes and agreements including debts of $220 million and $232.8 million.
LBI MEDIA and LBI MEDIA HOLDINGS recently amended the terms of their note exchange offers (NET NEWS 10/15), and in the 8-K filing, the company said that 58.5% of the principal amount of the Discount Notes not held by Holdings or Holdings’ affiliates have agreed to the swap.