Comcast, which reported 13.6m domestic video customers as of Q1 24, saw the Bally’s regional sports networks (RSNs) go dark in late April following media reports that the parties were at an impasse over costs and tier placement for RSN channels, with the deal formally expiring on 30 April.

James Bromley of Sullivan & Cromwell, speaking on behalf of the MLB, raised concerns around the progress being made in regards to the loss of carriage on Comcast, the impact on Diamond’s go-forward business plan, and the close proximity of the 18 June plan confirmation hearing. Bromley also noted the lack of details on economics from the Charter and DirecTV agreements, ending his remarks by stating that this was “not the deal that the MLB and its clubs signed up for.”

Vincent Indelicato of Proskauer for the NBA, and Shana Elberg of Skadden Arps for the NHL, echoed the MLB’s concerns around Diamond being able to submit a “viable business plan” and the rapidly approaching plan confirmation hearing.

Brian Hermann of debtors counsel Paul Weiss began the hearing by outlining progress on a new naming rights deal for Diamond, following the settlement with Sinclair which would allow Diamond to use the Bally’s name through the end of the MLB season.

Hermann went on to discuss Comcast, noting that Diamond offered to extend their agreement on a short-term basis, which Comcast declined, and the goal being to “lockup” a long-term deal with Comcast. The deal offered to Comcast was also noted to be similar to deals reached with Charter and DirecTV, which were stated to be larger than Comcast.

Below we outline the main distribution partners for Diamond and their total TV subscriber counts, with recent commentary on each.

Hermann then suggested that the voting and plan objection deadlines be extended by two weeks, to give the parties more time to resolve the issues with Comcast, which Judge Lopez did not oppose. A plan confirmation hearing would remain scheduled for 18 June, and we reproduce the modified dates below as filed to Diamond’s docket. Another status conference has also been scheduled for 4 June.

Following the status conference, the debtors moved to seek approval of an emergency motion (Docket #2040) regarding the recently announced renewal with DirecTV, Diamond’s second largest distributor, which was unopposed. The contract assumption would also resolve certain disputes with DirecTV, and allow for the release of certain amounts back to Diamond that were unilaterally withheld. Judge Lopez found the agreements to be in the best interest of the estate, and they were approved.

Per 9fin data, Diamond’s 5.375% second lien notes due 2026 and its 6.625% SUNs due 2027 were both quoted at 2.1 cents, compared to 2.7 cents on 14 May. Diamond’s pro forma prepetition capital structure can be found below.