Diamond Sports Group, operator of the Bally's branded TV sports networks, will miss $140m in interest payments due today (15 February), in a move that puts it near bankruptcy.
The company has instead chosen to enter a 30-day grace period on the interest payments. The interest payments relate to the company’s 6.625% senior unsecured notes due in 2027, the 5.375% 2L senior unsecured notes due 2026 and the 5.375% 3L senior secured notes due 2026.
Talks with creditors to continue
During this grace period, it said, talks with creditors and other key stakeholders will continue, “regarding potential strategic alternatives and deleveraging transactions to best position Diamond Sports Group for the future”.
This may result in the Sinclair Broadcast Group subsidiary filing for Chapter 11 bankruptcy, with its total debts reportedly $8.6bn.
Diamond Sports said it expects that “business will continue as usual” during this grace period. The company operates 19 regional sports networks (RS..