Examiner Report Criticizes Granite CEO, Board

Law360, New York (April 4, 2007, 12:00 AM EDT) -- An examiner of bankrupt Granite Broadcasting Corp. has found that company founder and CEO W. Don Cornwell and the company’s board may be susceptible to claims of breaching their fiduciary duty.

Andrew Hruska, a King & Spalding attorney who was appointed examiner, reported in a filing Monday in the U.S. Bankruptcy Court for the Southern District of New York that Cornwell had a conflict of interest in entering a financial agreement with Silver Point Finance LLC.

“Cornwell suffered inherent conflict between his loyalty to Granite in...
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