Updated

Updated · Bloomberg · Jun 26

Quebecor Urges Hearing on Corus Debt Swap, Offers Alternative Buyout for C$1.2 Billion Debt Load

Updated

Updated · Bloomberg · Jun 26

Quebecor Urges Hearing on Corus Debt Swap, Offers Alternative Buyout for C$1.2 Billion Debt Load

Q: Who are the secret investors poised to take control of Global News as its parent company faces collapse?

The investors poised to take control of Global News’ parent, Corus Entertainment, are Corus’s lenders led by Canso Investment Counsel Ltd. Under the court-approved debt-for-equity plan, those creditors would forgive about $500 million in debt and receive 99% of a new parent company, with existing shareholders left with 1%. The key concern is that some of the ultimate backers are not publicly identified. Canso is expected to emerge as the largest shareholder of the new company, with roughly 44.85% of the voting shares, but critics say Canso has not disclosed eight underlying or “backend” investors despite regulatory scrutiny. So the “secret investors” are not a named outside buyer but unidentified beneficial owners behind the lender group taking control through Canso and the broader creditor consortium. That lack of transparency is central to Quebecor’s challenge and to objections from minority shareholders, who argue that control of a major Canadian news organization could pass to financial investors with no clear public accountability or broadcasting track record.

2 articles · Updated · Bloomberg · Jun 26

Quebecor asked the CRTC to hold a public hearing on Corus Entertainment’s lender-led takeover, making a last effort to block the transaction.
The company argued Corus should instead be sold to Quebecor rather than handed to creditors through a debt-for-equity swap.
That swap would give Corus lenders led by Canso Investment Counsel control of the broadcaster, which owns Global News and other Canadian TV, cable and radio assets.
An Ontario court has already approved the plan, leaving the CRTC to decide whether the ownership change can proceed.