Regional sports activities community big Diamond Sports activities Group has chosen to overlook a $140 million debt curiosity cost attributable to its bondholders on Feb. 15 because it takes benefit of a 30-day grace interval.
“The corporate intends to make use of the 30-day grace interval to proceed progressing its ongoing discussions with collectors and different key stakeholders relating to potential strategic alternate options and deleveraging transactions to finest place Diamond Sports activities Group for the long run,” the division of Sinclair Broadcast Group stated in an announcement on Wednesday.
Representatives for Sinclair and Diamond Sports activities weren’t accessible to remark instantly on the continued talks with collectors. However Diamond Sports activities is known to be eyeing a attainable prearranged Chapter 11 chapter submitting to reorganize the corporate and its $8.6 billion debt load.
Diamond Sports activities in its assertion stated it meant “to maximise its monetary flexibility” by lacking its money curiosity cost due on its 6.625 p.c senior unsecured Notes due 2027, 5.375 p.c 2L senior secured notes due 2026, and 5.375 p.c 3L senior secured notes due 2026.
“Diamond Sports activities Group expects that its enterprise will proceed as standard, and it’ll hold broadcasting high quality dwell sports activities productions for followers whereas it addresses its stability sheet,” the corporate added about its 19 Bally Sports activities-branded regional sports activities networks.
These sports activities networks, together with Bally Sports activities, host a spread of MLB, NHL and NBA professional league video games. These rights offers with Diamond Sports activities could be impacted by any attainable Chapter 11 chapter continuing and its end result.
Diamond Sports activities in its most up-to-date third quarter monetary outcomes to Sept. 30, 2022 cited “elevated ranges of subscriber erosion” because it recorded a $1.04 billion impairment loss and talked about attainable “future materials impairments.”
It’s anticipated that Diamond Sports activities will proceed talks with its bondholders as a Chapter 11 chapter and an eventual debt-for-equity swap stay as attainable choices in direction of a settlement.