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Corus Entertainment receives CRTC approval for debt recapitalization plan
The Canadian Radio-television and Telecommunications Commission (CRTC) has approved a recapitalization plan for Corus Entertainment to address the company’s $1.1 billion debt load. The plan, which received prior approval from the Ontario Superior Court in March, aims to stabilize the financial position of the major independent broadcaster.
Under the proposed restructuring, secured lenders will forgive approximately $500 million in debt in exchange for 99 per cent ownership of a newly formed parent entity, NewCo. Existing Corus shareholders are expected to retain the remaining 1 per cent ownership. The CRTC granted an exemption from its tangible benefits policy, citing the unique nature of the transaction and the public interest in maintaining Corus’s news and information services.
Corus, which operates Global News, 25 specialty television services, 15 conventional stations, and 36 radio stations, indicated that the deal is necessary for its continued viability. The company expects the transaction to close in the coming weeks and anticipates no immediate impact on its employees, clients, or suppliers.
Entities
Canadian Radio-television and Telecommunications Commission · Corus Entertainment · Global News · NewCo · Ontario Superior Court of Justice
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Existing shareholders will hold the remaining 1 per cent of the new company. lethbridgeherald.com
- [○ 1 SOURCE] Lenders will forgive approximately $500 million in debt. lethbridgeherald.com
- [○ 1 SOURCE] Lenders will receive 99 per cent ownership of a newly created parent corporation called NewCo. lethbridgeherald.com
- [○ 1 SOURCE] Corus Entertainment has approximately $1.1 billion in debt. dailyguardian.ca
- [○ 1 SOURCE] Corus owns 25 specialty television services, 15 conventional stations, and 36 radio stations. toronto.citynews.ca
- [○ 1 SOURCE] The CRTC exempted the transaction from its tangible benefits policy. dailyguardian.ca
- [● 3 SOURCES] The CRTC approved Corus Entertainment’s recapitalization plan. dailyguardian.ca · lethbridgeherald.com · toronto.citynews.ca
- [● 2 SOURCES] The Ontario Superior Court approved the recapitalization deal in March. dailyguardian.ca · lethbridgeherald.com