A struggling subsidiary of Sinclair Broadcast Group that owns regional sports networks has opted to miss a debt payment due Wednesday, setting up a potential bankruptcy reorganization.
Diamond Sports Group, the nation’s largest owner of cable TV sports channels that showcase more than half of all MLB, NHL and NBA teams, said Wednesday it plans to “maximize its financial flexibility” and will not pay the $140 million cash interest payments on its debt.
That gives the network owner a 30-day grace period to work with creditors and other stakeholders. Diamond reportedly had been considering restructuring its $8.6 billion of debt through a Chapter 11 reorganization. Diamond owns 19 Bally Sports Regional Sports networks in states such as Arizona, Florida, Michigan, Ohio and California.
