Brian Davidoff, chair of the Bankruptcy, Reorganization & Capital Recovery Group, shared his insights with The Athletic regarding the relationship between Amazon and Diamond Sports Group.

Excerpts:

Brian Davidoff, of Greenberg Glusker, agreed: “Often, when the material parties, the majority of the main parties, have come together in a big case — you know the expression the train has left the station? It’s very difficult to make it go into reverse. … The fact that they’ve got this restructuring support agreement is a very solid indication that the parties are on the right path to plan confirmation.”

Davidoff was also surprised by the projections, though he was at least willing to entertain the possibility that the numbers might work.

“There have been more than one instance of what are (colloquially) called Chapter 22s, where there’s a second Chapter 11, because the first one didn’t work,” Davidoff said. “Now, that tends to be the minority of the Chapter 11s, particularly the large Chapter 11s.

“Sometimes, that second Chapter 11 is a liquidating Chapter 11, as opposed to a restructuring Chapter 11. But it tends to be the minority, because the whole idea of going through the (first) bankruptcy is to restructure the balance sheet.”

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