Back in the 1970s and 1980s, and even through the 90s and 2000s, local radio played a major role in many Americans’ lives.
Every car had a radio, and even small cities usually had multiple stations. They might be music formats, news talk, sports, or some hybrid of all of those, but most had a heavy local component.
The radio wasn’t just where Boston’s now-defunct WFNX introduced me to The Replacements, R.E.M., and Bob Mould; it was also the place where hosts like Adam XII, Julie Kramer, and Henry Santoro told me if school was canceled for a snow day.
Local radio, however, has struggled since streaming music put nearly every song ever recorded on your phone, and podcasts have largely replaced traditional talk radio.
That change in how people consume audio content has contributed to the May 10 Chapter 11 bankruptcy filing of Spanish Broadcast System (SBS).
Spotify and Apple Music killed the radio star
“Podcasts have officially overtaken AM/FM talk radio as the more popular medium for spoken-word audio in the United States,” according to Edison Research’s Share of Ear survey.
Radio has lost ground quickly, and not just in spoken content.
“Between April and June of 2024, listeners gave 67% of their daily time with ad-supported audio to radio, 19% to podcasts, 11% to streaming audio services, and 3% to satellite radio,” Nielsen shared in its The Record: Q2 U.S. audio listening trends report.
SBS faced a cash shortage
SBS is a multimedia company serving the more than 60 million people comprising the $4 trillion U.S. Hispanic market, the world’s fifth-largest economy, according to the company’s website.
Its top radio brands and mass appeal personalities in the largest U.S. metro areas include Los Angeles, Miami, Houston, Chicago, San Francisco/San Jose, Orlando, Tampa, and Puerto Rico, including La Mega in New York City.
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The company operates AIRE Radio Networks, the Mega TV Network, the LaMusica digital ecosystem, including the LaMusica and HitzMaker mobile apps and the CTV platform LaMusica TV, as well as its live events and promotional arm, SBS Entertainment.
In March, the company entered a forbearance agreement with its key debtholders as part of an ongoing discussion about its debt.
Now, it has formally filed for Chapter 11 bankruptcy protection, according to court documents filed on PacerMonitor.
“SBS disclosed as far back as its second-quarter 2025 earnings that it lacked sufficient cash to repay the $310 million in notes and had no firm commitment for refinancing, triggering a going concern warning,” Radio Ink reported.
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SBS Chapter 11 filing at a glance
- Spanish Broadcasting System filed for Chapter 11 bankruptcy protection on May 11, 2026, in the U.S. Bankruptcy Court for the District of Delaware, according to PacerMonitor.
- The filing is a prepackaged restructuring tied to roughly $310 million in 9.75% senior secured notes that matured on March 1, 2026, reported Radio and Television Business Report.
- Lead case number: 26-10708
- Petition date: May 11, 2026
- The company said holders of more than 72% of the notes backed the restructuring support agreement before the filing, according to the Radio and Television Business Report.
- First-day motions include a request for up to $30 million in debtor-in-possession financing, reported the Radio and Television Business Report.
“SBS said the restructuring will ‘significantly’ reduce debt, lower interest expense, and extend the maturity of its obligations by more than four years, while also improving liquidity. The company expects the streamlined capital structure to free up resources for reinvestment across its core business,” Inside Radio reported.
SBS follows other radio companies into bankruptcy
Advertising drives the radio business and that has been shrinking, according to a report from S&P Global.
“The U.S. radio industry is undergoing a bifurcation, with traditional spot ad revenue either flat or declining, while digital avenues such as podcasting, streaming, and connected device integration are driving growth…. However, the national and local spot ad markets are expected to decline over the forecast period,” the data showed.
That has led to a number of Chapter 11 filings in the radio industry.
- Cumulus Media, Chapter 11 (March 5, 2026): Cumulus Media, one of the largest U.S. radio broadcasters with around 395 stations and the Westwood One network, filed for Chapter 11 in the Southern District of Texas under a prepackaged restructuring support agreement, with lenders to eliminate about $592 million of debt and continue operations, according to court filings on PacerMonitor.
- Audacy, Inc., Chapter 11 (January 7, 2024): Audacy, the major U.S. radio operator owning more than 220 stations, filed prepackaged Chapter 11 in early 2024 to reduce nearly $1.9 billion in debt by about 80%, enabling creditors (including major investors) to take ownership stakes. The plan was confirmed by the bankruptcy court as part of its reorganization, according to documents on PacerMonitor.
- iHeartMedia, Chapter 11 (ended 2019): Unlike the others above, iHeartMedia underwent a major 15‑month Chapter 11 from 2018 to 2019, reducing debt and emerging from bankruptcy, a significant radio industry restructuring, according to court documents filed on Kroll.
- AMFM Broadcasting, Inc., Chapter 11 (2018): Filed Chapter 11 in March 2018 as a broadcast radio/television entity; case closed by 2019, reported The Wall Street Journal.
