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Broadcasting And Cable.com: Granite Broadcasting May Miss Debt Payment And Go Into Debt Default

J

Joseph_Gallant

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Broadcasting And Cable.com: Granite Broadcasting May Miss Debt Payment And Go Into Debt Default

According to this story on Broadcasting and Cable.com (registration may be required), Granite Broadcasting has warned that unless it sells some of it's assets or receives a capital infusion, the company will not be able to make an interest payment in June. That could force the company into Chapter 11 bankruptcy.

As you know, Granite had planned to sell two WB affiliates it owns (one in San Francisco, the other in Detroit) but the sale was cancelled after the announcement of the UPN/WB consolidating into The CW, which will leave the two stations in question without any network affiliation.

If Granite is forced to file for bankruptcy, could it cause a "fire sale" of its assets that could drag down TV station prices in general?? And who might be in-line to buy Granite stations should the company sell-off all of it's assets??

Conversely, do you think there's any way that Granite could sell some assets prior to June and be able to make that interest payment??
 
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