US regional media and entertainment company Diamond Sports Group, operator of Bally Sports, has entered into a restructuring agreement that will see it emerge from bankruptcy.
As part of the deal, a minority investment by Amazon will see Prime Video become Diamond’s primary partner, enabling Prime customers to access all local direct-to-consumer (DTC) content, including live MLB, NBA and NHL games, for the teams for which Diamond retains DTC rights.
The Restructuring Support Agreement (RSA) has been agreed with Diamond’s largest creditor groups, including over 85% of first lien debt holders, over 50% of the company’s second lien debt holders, and over 66% of unsecured bond holders.
The RSA includes a commitment from certain debt holders to provide US$450m of junior secured super priority debtor-in-possession financing, which will be used to support Diamond’s operations and repay US$350m of Diamond’s existing first lien debt. Certain large holders of Diamond’s debt have committed to make a substantial investment in the company and exchange their debt into equity to be issued by the reorganized Diamond Sports Group.
Diamond has also reached an agreement in principle with its parent company Sinclair to settle the pending litigation between the companies and the other named defendants. Under the settlement, Sinclair will pay Diamond US$495m in cash and provide ongoing management and transition services to support Diamond’s reorganization and separation from Sinclair’s operations. Under the RSA, the proceeds from the Sinclair settlement will be used to support the reorganization plan and fund distributions to certain creditors.
David Preschlack, CEO of Diamond, said: “We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024. We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business. Diamond’s near-term focus will be on implementing the RSA and emerging from bankruptcy as a going concern for the benefit of our investors, our employees, our team, league and distribution partners, and the millions of fans who will continue to enjoy our broadcasts.”
You are not signed in
Only registered users can comment on this article.
Netflix forecast to reach 400 million subscribers by 2031
Netflix is forecast to reach nearly 400 million subscribers worldwide by the end of 2031, reinforcing its position as the world’s leading subscription streaming platform despite growing consolidation across the industry.
Early Freeview switch-off would be “unprecedented gamble” for UK TV
Switching off Freeview in the 2030s would be far more complex, costly, and risky than the UK’s digital TV switchover, according to a report by Christy Swords, the former Director of Change at ITV Broadcasting, who was involved in the original process.
RTS names Chair of Student Television Awards at annual ceremony
At the annual awards ceremony, the Royal Television Society (RTS) welcomed Rhuanedd Richards as Chair of the Student Television Awards.
.jpg)
Sony invests seven figures in AI copyright protection startup
The Sony Innovation Fund has invested in Midnight Labs to protect IP from mass piracy, deepfakes, and AI-generated infringement in the US and Japanese markets.
CMA formally begins investigating Paramount's $110bn WBD merger
The UK’s Competition and Markets Authority (CMA) has published the commencement notice for its investigation of Paramount Skydance’s anticipated acquisition of Warner Bros. Discovery (WBD), marking the official beginning of the inquiry.
