TORONTO — Corus Entertainment, the parent of Canada’s Global TV network and a group of broadcast radio stations including Rocker CILQ “Q107” and Alternative CFNY “Edge 102” in the nation’s largest market, has received an order from the Ontario Superior Court of Justice to proceed with its previously announced recapitalization transaction, pursuant to a plan of arrangement under the Canada Business Corporations Act.
The Recapitalization Transaction remains subject to, among other things, satisfaction of the terms and conditions in the support agreements with key stakeholders and the receipt of all customary and necessary regulatory approvals, including from the Canadian Radio-television and Telecommunications Commission and the Toronto Stock Exchange.
In a brief statement, Corus said it is “working expeditiously to obtain all necessary regulatory approvals and complete the Recapitalization Transaction as soon as reasonably practicable. Corus will provide updates as to timing of completion when further information regarding timing of CRTC approval is known.”
Corus believes the Recapitalization Transaction is designed to strengthen its financial foundation and support the Company’s long-term business strategy.
It would do so, Corus says, by accomplishing the following:
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Reducing total third-party debt and other liabilities by more than $500 million
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Decreasing initial annual cash interest payments by up to $40 million
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Extending debt maturity by five years
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Maintaining continued access to a $125 million secured revolving credit facility
Corus continues to operate in the normal course of business, stressing that there are no changes to any obligations to its clients, suppliers, production partners, trade creditors or employees; it looks forward to completing the Recapitalization Transaction.
