Granite Broadcasting, Owner of California TV Stations, Files for Chapter 11 Bankruptcy
Granite Broadcasting filed for Chapter 11 bankruptcy last week. The Company, an owner of television stations in California and New York, says that it has already made plans to reorganize itself while under bankruptcy protection. Granite has listed $100 million in assets and $100 million in debt.
The Company says the plan it has negotiated with creditors will cut its corporate debt to $230 million—that’s a $275 million reduction, according to the company. A judge and the creditors must formally approve the plan before it can go into effect. Granite Broadcasting says it has less than 200 creditors.
Granite Broadcasting Corporation owns and operates, or provides programming, sales and other services to 23 channels in the following 11 markets:
· San Francisco, California;
· Detroit, Michigan;
· Buffalo, New York;
· Fresno, California;
· Syracuse, New York;
· Utica, New York;
· Binghamton, New York;
· Elmira, New York;
· Fort Wayne, Indiana;
· Peoria, Illinois;
· and Duluth, Minnesota-Superior, Wisconsin.
The Company’s channel group includes affiliates of NBC, CBS, ABC, CW, and My Network TV and reaches approximately 6% of all U.S. television households. Granite claims that it was forced into bankruptcy partially because of the fall of the WB Network, which made it impossible to sell its San Francisco television station.
Under Granite’s Proposed Reorganization Plan:
· The Company will continue to run its business.
· Stations will continue to broadcast in their local areas.
· The Company will become privately held.
· The current secured debt holders will trade existing notes for new notes and new common stock.
· Current common and preferred stockholders will exchange their existing stock for shares of the newly reorganized company.
Sagaria Law, P.C. helps companies and individuals file for bankruptcy protection under the United States Bankruptcy Code. We guide clients through the bankruptcy process so that they may recover from bankruptcy and rebuild their lives and their organizations.
To speak with one of our bankruptcy attorneys, contact Sagaria Law, P.C. today. We work with clients in Santa Clara County, Monterey County, Alameda County, and the surrounding areas.
WKBW-TV's parent files for bankruptcy protection, Buffalonews.com, December 12, 2006
Granite Broadcasting Voluntarily Files Petition for Reorganization, Granite Broadcasting Investor Relations, December 11, 2006
Related Web Resource:
An Overview of Corporate Bankruptcy, Investopedia.com
U.S. Code: Chapter 11 Reorganization, Cornell Law School
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