Typically there are negotiations with creditors to obtain the proper number of affirming votes, and the role of the judge is to make sure everyone is treated fairly insofar as the assets of the debtor allows – not, for example, paying 13 small creditors in full and giving two largest creditors zero.Īnd again, most times the debtor retains the right to keep operating their own business concern, make day-to-day decisions, and can ask the court for approval to take on new debt. Under a ch11 filing, the debtor almost always has a right to submit its own reorganization plan which the affected creditors have a right to then vote upon, and, them the court gets to approve or disapprove. Pads fans – all due respect, BUT you’re clueless about how Ch11 works. * The Angels, Braves, Brewers, Cardinals, Diamondbacks, Guardians, Marlins, Padres, Rangers, Rays, Reds, Royals, Tigers, and Twins are all broadcast by Bally. There’ll surely be more developments over the coming weeks and months, but the long-anticipated bankruptcy for the fledgling RSN corporation has officially been set in motion. (Diamond didn’t provide any specifics on its planned course of action in today’s release.)Īccording to the Post, MLB is planning to step up for teams whose contracts are abandoned and stream them in-market for free while the league searches for alternatives. Kosman reported yesterday that Diamond would try to restructure its deals with some of the clubs but was planning to entirely reject its contracts with the Diamondbacks, Padres, Guardians and Reds. The most notable development for fans of teams whose local broadcasting deals are carried through Bally is that the company confirmed the RSN “ will continue to operate in the ordinary course during the Chapter 11 process.” The corporation added it has approximately $425MM in cash to fund the business during its restructure.ĭiamond is responsible for local broadcasts for 14 major league teams*. “ We are utilizing this process to reset our capital structure and strengthen our balance sheet through the elimination of approximately $8 billion of debt.” “ The DSG Board of Managers has been evaluating strategic opportunities with the support of its advisors and in coordination with creditors to position the Company for long term success and has determined that the best path forward for the Company and its stakeholders is to restructure through a Chapter 11 process,” said CEO David Preschlack. That was expected to officially occur on Friday, but the process has evidently been accelerated a few days. Josh Kosman of the New York Post reported yesterday that Diamond was planning to file for bankruptcy. The company announced the news in a press release. Projected Arbitration Salaries For 2023ĭiamond Sports Group, the corporation which owns the Bally Sports regional sports networks, officially filed for Chapter 11 bankruptcy in the Southern District of Texas this afternoon.
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