Granite Broadcasting exclusivity hearing adjourned to April 16 confirmation

By Michelle Anderson

Rochester, N.H., April 11 - Granite Broadcasting Corp.'s hearing to approve the exclusivity extension was adjourned to April 16 for administrative purposes, according to a source familiar with the hearing.

The issue will now be considered at the end of the confirmation hearing.

As previously reported on April 5, preferred equity holders objected to the company's request for an exclusivity extension and said they plan to file an alternative plan that will satisfy all creditors in full and infuse substantial new capital into the reorganized company.

According to the objection, the company wants to prevent the preferred equity holders - who claimed their opposition is likely to defeat Granite's plan - from filing an alternative plan.

Preferred equity holders alleged that the lack of good faith exhibited by Granite and its insiders mandates the immediate termination of the exclusive periods.

A term sheet outlining the preferred equity holders' alternative plan was sent to the company on March 30. The preferred equity holders have committed to funding the plan.

The commitment was conditioned upon the company's support, which has yet to be provided, according to the preferred equity holders.

Granite is a New York-based owner and operator of network-affiliated television stations. It made a pre-packaged Chapter 11 filing on Dec. 11. Its Chapter 11 case number is 06-12984.

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