Bally Sports North parent company files for bankruptcy
BALTIMORE (Valley News Live) - Finding Twins, Wolves, Wild and Lynx coverage in one place could get tricky for Minnesota sports fans in the coming months, after the parent company of Bally Sports North announced it filed for bankruptcy Tuesday.
In a statement from Diamond Sports Group, LLC, (DSG) the company said it filed for Chapter 11 bankruptcy protection in an effort to “restructure and strengthen” the business. According to the statement, the company says its Bally Sports regional sports networks — Bally Sports North for us here in Minnesota — will “continue to operate in the ordinary course” during the proceedings.
Part of restructuring, according to DSG, will involve cutting its business ties with Sinclair Broadcast Group, Inc. to become a “standalone company.” Sinclair is among the top holders of DSG’s debt, according to the statement.
With the move, DSG says it aims to eliminate more than $8 billion of outstanding debt.
“We are utilizing this process to reset our capital structure and strengthen our balance sheet through the elimination of approximately $8 billion of debt,” said CEO of DSG David Preschlack. “The financial flexibility attained through this restructuring will allow DSG to evolve our business while continuing to provide exceptional live sports productions for our fans.”
Preschlack went on to say, “With the support of our creditors, we expect to execute a prompt and efficient reorganization and to emerge from the restructuring process as a stronger company.”
As part of its Tuesday filing, DSG is also seeking various forms of “first-day” relief, including the authority to pay employees their benefits and wages, and to honor customer programs “without disruption.”
Earlier this month, Bally Sports North and DSG announced the company was dealing with a heavy amount of debt and could lose broadcasting rights to sporting events this season, potentially sending them to other major networks like the MLB’s.
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