GRANITE SECURES $25 MILLION CREDIT FACILITY

Granite Broadcasting Corp. has received approval by the United States Bankruptcy Court for as much as $25 million of borrowings while undergoing its court-supervised restructuring. Approval of this line of credit provides the company with access to funds for operations, should they be needed.

Commenting on today’s announcement, W. Don Cornwell, chairman and chief executive officer, said: “We are pleased that the court has approved our request for access to additional funding, if needed, while we complete the reorganization of our corporate balance sheet. Although we currently do not anticipate a need to draw upon the line, we believe it is in the best interest of the company to have such availability in place to ensure there will be no disruptions to our business while we restructure.”

Potential borrowings under the line of credit would be used to fund the post-petition operations of the business, Granite said. It added that all liabilities of the company incurred after the Dec. 11, 2006, filing date are considered priority claims and must be paid before the reorganization can be completed.