Sinclair Broadcast Group Inc., which is controlled by David Smith and his family and operates 58 television stations, said that if it can't restructure its heavy debt load, it will have to file for bankruptcy.

The Baltimore-based Group, whose reigns are in the hands of David Smith and his family, has an outstanding debt worth $1.3 billion as of March 31.

Sinclair Broadcast Group Inc stated in a filing with the Securities and Exchange Commission that the worsening financial health of its partner could negatively affect company's revenue.

In case Cunningham files for bankruptcy, Sinclair will lose $77 million in revenue on yearly basis.

Now the group is trying its best to settle terms on notes worth $500 million that will due in the time span of coming 18 months.

In the filing, Sinclair also held recession responsible for decline in advertising contracts. Recession hit hard the auto-industry, which used to fetch a quarter of the company's ad sales.

Apart from Sinclair, other broadcasters such as Young Broadcasting Inc and ION Media Tribune Co have already filed for bankruptcy this year.

In the recent trading, Sinclair shares fell 25% to $1.10 on Nasdaq.