Granite Broadcasting expects to miss June 1 interest payment on 9¾% notes

By Caroline Salls

Pittsburgh, March 31 - Granite Broadcasting Corp. does not expect to have sufficient cash on hand to make the $19.74 million June 1 interest payment on its 9¾ senior secured notes without changes to its capital structure and station ownership mix, according to a 10-K filing with the Securities and Exchange Commission.

As a result, the company said it is continuing to explore the sale of its two WB affiliates and the restructuring of the company.

However, Granite said use of sale proceeds is restricted and of the net proceeds received in an asset sale, $5 million must go toward working capital purposes and the rest must be used to either invest in or finance replacement properties and assets or to make an offer to noteholders to purchase an equal amount of notes, minus any net proceeds used to acquire replacement assets.

The company said if it is successful in selling its two WB affiliates and/or restructuring the company, it believes the available proceeds plus cash and cash equivalents on hand and internally generated funds from operations may be sufficient to satisfy its cash requirements for existing operations and debt service for the next 12 months.

The company said it has retained Houlihan Lokey Howard & Zukin as its financial adviser to assist in the evaluation of strategic options and to advise it on available financing and capital restructuring alternatives.

Granite is a New York-based owner and operator of network-affiliated TV stations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.