Corus Entertainment Inc. says it has completed a recapitalization transaction first announced in November of last year and has appointed a new board of directors.
The deal stipulated that some of Corus’s lenders would forgive approximately $500 million in debt in exchange for 99 per cent ownership of a newly created parent corporation that would wholly own Corus and its services.
The company says its class B non-voting shares are expected to be delisted from the Toronto Stock Exchange at the end of the Oct. 9 trading day, with new shares to begin trading on Oct. 13.
Corus was granted regulatory approval by the Canadian Radio-television and Telecommunications Commission in September for its plan, which spurs a change in ownership and shifts effective control of all licensed programming services operated by the company and its subsidiaries.
In a summary of the CRTC’s decision, the regulator said Corus is facing “significant financial challenges” and that the transaction would help ensure it continues to be part of the Canadian broadcasting industry.
Corus owns 25 specialty television services, 15 conventional stations and 36 radio stations, as well as digital and streaming platforms.
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