It was the expected outcome, but it is no less jarring. Diamond Sports Group, which runs Bally Sports, is expected to file for bankruptcy within the next month after missing a $140 million interest payment, per a report from John Ourand of the Sports Business Journal. This will result in a Chapter 11 bankruptcy and restructuring/reorganization effort.
It's official. Diamond Sports has elected to skip its $140 million interest payment and has entered a 30-day grace period that is expected to lead to a bankruptcy filing.
— John Ourand (@Ourand_SBJ) February 15, 2023
Also, per Ourand:
“The company intends to use the 30-day grace period to continue progressing its ongoing discussions with creditors and other key stakeholders regarding potential strategic alternatives and deleveraging transactions to best position Diamond Sports Group for the future.