Spanish Broadcasting System’s bankruptcy plan that would put it in the hands of its creditors is drawing pushback from Hispanic media’s marketing side. A trade group wants the FCC to look beyond the finances and weigh what the change could mean for Latinos.
The Hispanic Marketing Council filed formal comments with the Commission earlier this month asking the FCC to conduct a thorough review of the broader public-interest implications of the proposed ownership structure before making a final decision, to allow sufficient time for investigation, discussion, and public input, and to analyze the potential effects on the audiences and communities the stations serve.
HMC Executive Director Horacio Gavilan told members on October 2 why the group spoke up. HMC said SBS operates Spanish-language radio stations in key US markets that deliver news, emergency information, entertainment, and “a sense of community” to millions of listeners.
The Hispanic Marketing Council said in its filing, “With SBS reaching millions of listeners daily, we’re calling on the FCC to thoroughly evaluate the impact of public interest and Hispanic audiences before moving forward.”
Hispanic Marketing Council Executive Director Horacio Gavilan stated, “A change in ownership could affect the programming, services and audiences tied to those licenses. Our filing makes the case that this is not just a business transaction — it is a question of how public-interest obligations to Hispanic audiences will continue to be met.”
Under SBS’s plan, its existing capital stock would be canceled, with noteholders receiving all the common stock in the reorganized company. In September, Radio Ink reported that foreign investment funds are seeking approval to hold post-bankruptcy shares, and that SBS projects foreign ownership rising from 12.9% equity and 3.8% voting interest to 64.13% equity and 67.02% voting interest after emergence. In May, SBS filed a prepackaged Chapter 11 petition in Delaware.
RBR+TVBR, Radio Ink‘s partner publication, reported that multiple people close to the matter acknowledge a transfer of control to lienholders could bring changes aimed at recouping their financial losses. That includes format changes in San Francisco and Chicago, along with market rumors that WPAT in New York could become a Country station.
The Hispanic Marketing Council stated, “As the only national trade organization representing marketing, communications and media companies that engage the U.S. Hispanic community, HMC has a responsibility to speak up when decisions like this one could shape how our community is informed and served.”
