Overview
- Corus proposes to exchange $500 million in senior unsecured notes for equity in a new parent company, leaving noteholders with 99% ownership and existing shareholders with 1%.
- The company expects to reduce total debt and other liabilities by more than $500 million and lower annual cash interest by up to $40 million.
- Support agreements include holders of nearly three quarters of the $750 million senior notes, all lenders under the senior credit facility, and the Shaw Family Living Trust.
- The deal remains conditional on court, CRTC, shareholder and TSX approvals and anticipates a refreshed board and new debt with extended maturities.
- Executives cite prolonged declines in TV advertising and recent losses and impairments as catalysts, framing the plan as restoring liquidity to pursue operations and digital initiatives.