Sports Authority Inc. is struggling to persuade creditors to reduce its outstanding debt as it tries to stave off a bankruptcy filing, Bloomberg News reported yesterday. The sporting-goods retailer, which skipped an interest payment last week on its $343 million of subordinated debt maturing in 2018, has been talking to the bondholders about taking a loss on the notes in exchange for other securities. The company, which has at least $643 million in debt, may seek chapter 11 protection if it fails to agree on a deal with the bondholders. Sports Authority entered a 30-day grace period last Friday, according to Moody’s Investors Service. After that, a default is triggered if the interest payment is still not covered.
