Diamond Sports Group, a struggling subsidiary of Sinclair Broadcast Group that owns regional sports networks, filed for a bankruptcy reorganization late Tuesday, burdened by more than $8 billion in debt.
The move, expected after Diamond chose to miss a debt payment last month, sent Sinclair’s stock tumbling, down more than 8% to $13.32 a share in afternoon trading on Wednesday.
Diamond said in an announcement Tuesday evening that it’s finalizing a “restructuring support” agreement with holders of a majority of the company’s debt and with Sinclair that will eliminate much of the outstanding debt.
