At press time there was still no word on whether Granite Broadcasting had made its $19.7 million interest payment.
The payment was due June 1, but the loan agreement gives the company a grace period that expired Friday (June 30).
Thursday, a Chancery court cleared the last hurdle to closing on the $150 million cash deal, ruling against a suit brought by investor Harbinger Capital Partners to block the deal. Four private-equity firms, led by former Cox and Meredith executive Kevin O’Brien, are trying to buy WDWB Detroit and KBWB San Francisco.
If it doesn’t make the payment, Granite will be in default and investors owning $405 million in notes can demand immediate repayment.
The FCC earlier in the week approved the sale.