Granite Broadcasting expects to make June 1 interest payment on 9¾% notes within 30-day grace period

By Caroline Salls

Pittsburgh, May 31 - Granite Broadcasting Corp. expects to make its $19.7 million June 1 interest payment on its 9¾% senior secured notes due 2010 within the 30-day grace period provided in the notes indenture, according to a company news release.

The company said it expects to make the interest payment upon the closing of the sales of its San Francisco and Detroit television stations.

The sales of the stations, which are subject to Federal Communications Commission approval, the restructuring of some programming obligations, and customary closing conditions, are expected to close by June 30.

On March 31, Granite said it did not expect to have sufficient cash on hand to make the June 1 interest payment on its 9¾ senior secured notes without changes to its capital structure and station ownership mix.

As a result, the company said then that it was exploring the sale of its two WB affiliates and the restructuring of the company.

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

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