The court had previously issued an extension meaning that Diamond Sports had until September 30th to file its plan. However, under mounting pressure from leagues, teams and creditors, the company has now requested that this deadline be pushed to November 29th, with both the NHL and NBA seasons already well underway. This would give the company until January 29th to seek approval from its creditors once the plan is finalized and filed.
In its request DSG said:
Diamond Sports Requests Another Extension in Bankruptcy CaseNavigating these choppy waters requires discussions with, and cooperation from, many parties, including multiple creditor groups, sports leagues, teams, and MVPDs. With the NBA and NHL seasons almost here, and a key MVPD contract up for renewal, the debtors realize that time is short and each day matters.”
Just last month, DSG agreed a long-term rights agreement deal with the Los Angeles Kings of the NHL. The plan is that deals such as these will help with the company’s reorganization plan.
DSG is also embroiled in a legal battle with corporate parent company Sinclair Inc. The company has filed a $1.5 billion fraud claim against Sinclair and followed that up with a second lawsuit against JPMorgan Chase. DSG alleges that the firm facilitated the funneling of $922 million in dividend payments from DSG while the company was moving towards insolvency.
