Regional sports network owner Diamond Sports Group LLC filed for Chapter 11 bankruptcy protection on March 14, as cord-cutting impairs the markets that the company’s regional sports networks serve.
The company said it anticipates separating itself from Sinclair, while leaving first-lien lenders unimpaired. The remaining creditors would equitize their debt, receiving equity and warrants in exchange for their claims.
CEO David Preschlack said he expects the company will “execute a prompt and efficient reorganization,” although he offered no timeline for completing the process.
The company’s legal counsel is Paul, Weiss, Rifkind, Wharton & Garrison LLP and Wilmer Cutler Pickering Hale and Dorr LLP. The restructuring advisor is AlixPartners LLP, while LionTree Advisors LLC and Moelis & Company LLC are Diamond’s investment bankers.
In February, S&P Global Ratings downgraded Diamond to D, from CCC- and a negative outlook, after the company announced it will not pay interest on its senior secured second-lien and third-lien notes, and its unsecured notes. The second-lien notes were also downgraded to D, from CCC-, while the unsecured notes were lowered to D, from C. The third-lien notes are unrated by S&P.
This article originally appeared on PitchBook News