LBI Media Inc., the nation’s largest private minority-owned Spanish language TV and radio broadcaster filed for bankruptcy Wednesday, blaming its woes on competition from digital media platforms and a heavy debt load, WSJ Pro Bankruptcy reported. The Burbank, Calif.-based company has also faced legal challenges from a group of the company’s second lien bondholders, led by Caspian Capital LP, who sued to stop the broadcaster’s move to restructure its debt via an out-of-court deal with senior lender HPS Investment Partners, according to a filing in U.S. Bankruptcy Court in Wilmington, Del. LBI Media was founded in 1987 by Lenard Liberman, chief executive officer of the company, and his father Jose Liberman, both immigrants from Mexico. Like other radio and TV broadcasters, LBI’s advertising revenues took a big hit during the 2008 financial crisis and never recovered. LBI’s earnings reached a peak of $48 million in 2006 but fell to $19 million by 2012. Last year the company brought in $31 million — well short of the company’s $47 million annual interest burden, according to court filings.
