Diamond Sports Group Enters into Restructuring Support Agreement that Provides Framework for Reorganization Plan to Emerge from Chapter 11 as a Going Concern; Sinclair Will Pay Diamond $495M In Cash Per Settlement
Portfolio Pulse from Charles Gross
Diamond Sports Group has entered into a Restructuring Support Agreement with key creditors to reorganize and emerge from Chapter 11 bankruptcy. The agreement includes over 85% of first lien, over 50% of second lien, and over 66% of unsecured bond holders. Sinclair Inc., Diamond's parent company, will pay $495 million in cash and provide support services as part of a settlement to aid Diamond's reorganization and separation from Sinclair.
January 17, 2024 | 11:06 am
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Sinclair Inc., the parent company of Diamond Sports Group, will pay $495 million in cash and provide management and transition services to support Diamond's reorganization.
The payment of $495 million in cash by Sinclair Inc. to Diamond Sports Group as part of the restructuring agreement is a significant financial commitment. This outflow of cash could negatively impact Sinclair's short-term liquidity and financial position, potentially leading to a negative investor sentiment towards SBGI's stock in the short term.
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