Sinclair Sports Debt Plunges to Half Off as Creditor Talks Stall
- Company’s proposal calls for new financing, debt exchange
- Parent of Diamond Sports looks to fund turnaround strategy
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Debt tied to Sinclair Broadcast Group Inc.’s sports unit sold off after the company disclosed a failed attempt to raise new capital and rework its balance sheet with existing creditors.
Bonds of its Diamond Sports Group unit due 2027 fell to less than half their face value on Tuesday as holders were released from restrictions limiting their ability to trade. The senior unsecured notes were among the worst performers in the U.S. high-yield market, according to Trace bond trading data.