Sports Authority Inc. skipped a $20 million interest payment on its bonds due on Friday as the retailer continued talks with creditors about how to restructure debt, Bloomberg News reported. The move follows several months of deliberations with Sports Authority’s financial adviser, Rothschild & Co., the company said on Friday. It also has held discussions with senior lenders about ways to strengthen the retailer’s balance sheet, Sports Authority said. The payment is the interest on its privately placed $343 million subordinated notes maturing in 2018. Without reaching an agreement with the bondholders for a forbearance, the company will be forced to file for bankruptcy as skipping a coupon payment is considered a default. The retailer has at least $643 million in debt, including a newly extended $343 million in subordinated notes maturing in 2018, according to data compiled by Bloomberg and Moody’s Investors Service Inc.
