Prisa mulls Chapter 11 bankruptcy

Spanish pay TV operator Prisa is reportedly considering filing for Chapter 11 bankruptcy protection in the US.

According to a Wall Street Journal report, which cites people familiar with the situation, the move would come as Prisa seeks to refinance some US$3 billion (€2.3 billion) of debt.

The report said that while Chapter 11 is being discussed, no final decision had been made and Prisa could also restructure in Spain. The firm trades on the Madrid and New York stock exchanges.

One way that Prisa could reduce its debt is to split off underperforming assets, the reported added, with its pay TV company Digital+ already reportedly up for sale.

The news comes less than a month after Prisa CEO Juan Luis Cebrian said that the firm was “in the final stages” of refinancing its debt, with 70% of lenders on board with the plan.

Speaking at the firm’s annual general meeting – in his first address to Prisa’s shareholders since his appointment as CEO last July – Cebrian said that the refinancing plan would ensure the viability of Prisa without damaging its growth, or waiting for economic recovery.