Granite Broadcasting Corp. said this week the court has approved its reorganization plan. Granite filed Chapter 11 last December, submitting a plan negotiated with secured debt holders to take the company private. The U.S. Bankruptcy Court confirmed the reorg plan for the Southern District of New York May 22.
Granite filed in light of a cash shortage on payments due last December of $90 million. The restructuring reduced the company's debt burden and provided a $25 million revolving credit facility, undrawn at closing. Senior secured 9 3/4 percent notes due 2010 worth about $500 million, have been converted to a new $200 million secured loan and shares representing about 97 of the company's equity. Silver Point Capital in Greenwich, Conn., is the majority shareholder.
General unsecured creditors receive full recovery on pre-petition or agreed-upon claims. All of the company's pre-existing 12 3/4 percent cumulative exchangeable preferred and Class A and B common stock have been canceled. The new stock will not be traded publicly.
Granite owns and operates, or runs 23 channels in 11 markets reaching about 6 percent of all U.S. TV households.
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