Diamond Sports announced at a status conference today in the Southern District of Texas Bankruptcy Court that it will seek confirmation on July 29, extending deadlines and milestones in its DIP and RSA.
The extended confirmation to July 29 from June 28 is to afford the company time to iron out negotiations and finalize business plan details, according to debtor’s counsel.
Debtor counsel Paul Weiss explained to presiding Judge Christopher Lopez that the DIP lenders and prepetition creditors have agreed to the milestone adjustments, but the August 21 emergence deadline will stay in place.
Distribution deals remain a key focus. Diamond Sports today announced secured long-term agreements with 84% of its partners. Furthermore, a new arrangement with streaming service Fubo is in the final stages of negotiation, according to debtors’ counsel. Contrastingly, talks with Comcast remain at an impasse.
Representatives for the MLB, NHL and NBA all voiced concerns over the lack of transparency and the failure of the company to lock in a deal with Comcast today. James Bromley of Sullivan & Cromwell for MLB and certain clubs stated to Judge Lopez that “we anticipate filing an objection and taking the position that the debtor does not have a viable plan.”
Similarly, counsel for the NBA indicated unease about the upcoming 2024-2025 season today, questioning the debtor’s ability to formulate a sustainable business plan. The NBA has noted an absence of significant progress since the previous May 15 status conference and regards the July confirmation extension as insufficient advancement.
Despite this, Judge Lopez expressed support for the company to continue in its negotiations and advised the leagues that he will be ready to rule if they seek court intervention.
The next debtors’ status conference is June 9 at 15:00 ET.
Jennifer Lappe, J.D.
jennifer.lappe@levfininsights.com
+1 346 256 1345