Sports fans in Tennessee and beyond are likely familiar with Diamond Sports Group (DSG). The company is the largest sports network owner in the country. Like many businesses, DSG has been hit with financial challenges in recent months. These challenges have made it difficult to keep up with debt repayments. In fact, last month, the company was unable to meet an interest payment of $140 million, which may have been the issue that ultimately compelled owners to file for Chapter 11 bankruptcy.
One of the greatest benefits of this financial tool is that businesses using the program to restructure payments to creditors are often able to stay up and running during the process. A spokesperson for DSG said that the company will still be able to provide sports coverage to viewers while reorganizing its debt of more than $8 billion. To qualify for Chapter 11, creditors will have the opportunity to object to the proposed plan for restructuring payments.
Who can file for Chapter 11 bankruptcy?
When an individual or business is seeking debt alleviation, it is helpful to consider the available bankruptcy options to determine which one best fits current needs. With Chapter 11 bankruptcy, most people or businesses can submit a petition; however, there are certain issues that would prevent eligibility. For example, if the individual or business has had a bankruptcy petition dismissed within a certain time frame because of noncompliance with the court’s orders, Chapter 11 would not be an option.
DSG operates under the Bally Sports banner. At the time of its bankruptcy filing, the company owned the rights to broadcast games for more than 40 basketball, baseball and hockey teams. The CEO said that although the company’s financial problems are unfortunate, he is confident that DSG will be able to continue providing quality sports coverage to fans throughout the country thanks to the restructured payment plans and debt alleviation that Chapter 11 bankruptcy will make possible. Any business in need of guidance regarding the program may schedule a meeting with a bankruptcy attorney.