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Granite plan filing deadline extended; shareholders file suit
By Caroline Salls
Pittsburgh, Sept. 1 - Granite Broadcasting Corp. entered into an amendment and limited waiver to its credit and guaranty agreement with Silver Point Finance, LLC to extend to Sept. 15 from Aug. 31 the date by which the company and its subsidiaries must execute a restructuring plan term agreement, according to an 8-K report filed with the Securities and Exchange Commission on Thursday.
The restructuring agreement must be acceptable to lenders holding more than 50% of the total loan exposure under the credit agreement.
The amendment also extended to Sept. 15 the date by which the failure of Malara Broadcast Group, Inc. to refinance its existing credit facility would constitute an event of default under the credit agreement.
In addition, on Aug. 21, Harbinger Capital Partners Master Fund I, Ltd. and GoldenTree Master Fund High Yield II, Ltd. filed a shareholder derivative lawsuit in the Court of Chancery of the State of Delaware in and for New Castle County naming Granite Broadcasting and all but two of its current directors as defendants.
The two directors not named in the lawsuit are those appointed by Harbinger and other holders of a majority of the outstanding shares of the company's 12¾% cumulative exchangeable preferred stock.
Granite Broadcasting's chief financial officer and chief operating officer were also named as defendants in the lawsuit, which alleges breach of fiduciary duty in connection with financing and restructuring proposals made in June by Harbinger and GoldenTree and financing transactions entered into in July with affiliates of Silver Point Finance LLC.
Granite is a New York-based owner and operator of network-affiliated television stations.
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