Corus Entertainment announced Tuesday it has received an order from the Ontario Superior Court of Justice to proceed with its previously announced recapitalization transaction, which is designed to reduce the media company’s third-party debt and other liabilities by more than $500 million.
Other expected benefits of the recapitalization include decreasing Corus’s initial annual cash interest payments by up to $40 million, as well as extending debt maturity by five years and maintaining continued access to a $125-million secured revolving credit facility.
The court approval for the recapitalization transaction comes after Corus failed in January to obtain the required shareholder support for the plan.
“The Recapitalization Transaction remains subject to, among other things, satisfaction of the terms and conditions in the support agreements with key stakeholders and the receipt of all customary and necessary regulatory approvals, including from the Canadian Radio-television and Telecommunications Commission (the “CRTC”) and the Toronto Stock Exchange,” Corus said in a Tuesday press release.
“Corus is working expeditiously to obtain all necessary regulatory approvals and complete the Recapitalization Transaction as soon as reasonably practicable. Corus will provide updates as to timing of completion when further information regarding timing of CRTC approval is known,” it said.
