The Canadian Radio-television and Telecommunications Commission has been pressed to say no to a proposed recapitalization plan submitted by broadcast licensee Corus Entertainment by a collection of minority shareholders.
Why? They want the owner of the Global TV network; several cable TV networks; and radio stations including CFIQ-AM 640, CFNY “The Edge” and CILQ “Q107” in Toronto to keep its editorial diversity and local news coverage.
The group, which includes those holding more than 10 million shares in Corus, also ask the CRTC to put a lid on sharing any further news regarding the future of the Toronto-headquartered company, which has suffered from severe economic concerns for the last several quarters.
With its quarterly earnings call set for Friday, Corus shares are priced at just $0.03 CDN.
Corus’ recapitalization plan seeks to bring swift remedies to its Loonie and Twonie dilemma, and in March got the OK from Ontario Superior Court to move forward with the initiative. However, the CRTC needs to say yes.
What is the CRTC weighing? If approved, some of Corus’ debtholders would erase roughly half a billion in Canadian dollars. In exchange, they’d wind up with 99% ownership of a newly established parent that would run Corus as a subsidiary.
For existing Corus shareholders, they’d end up with shares that, when totaled, would comprise just 1% equity interest in the broadcaster.
Shareholders voted no on the plan in January; Corus went to Ontario Superior Court to go around that vote.
According to the Canadian Press, holders of just 61.2% of Corus’ Class B shares voted in favor of the deal; it required 66.7% approval to gain approval.
Meanwhile, the minority shareholder group said it seeks a public hearing on the matter.
