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Ontario Court Backs Corus Recapitalization Plan

The ruling clears a path to cut over $500 million in debt pending regulatory approvals.

Overview

  • Corus won court approval to proceed with a debt‑for‑equity recapitalization through a court‑sanctioned plan of arrangement that will place the company under a new parent, NewCo.
  • The plan targets a reduction of more than $500 million in total debt and up to $40 million a year in interest costs, with debt maturities extended by five years.
  • Senior unsecured noteholders would receive shares in NewCo and hold 99 percent of the company once the deal closes.
  • The transaction still requires sign‑offs from the CRTC and the Toronto Stock Exchange, and Corus says day‑to‑day service for clients, partners, and employees will continue without change.
  • The court route followed a January vote that fell short among Class B shareholders, against a backdrop of weaker TV ad revenue and tougher competition from streaming services.