May 27th, 2024

Progress reported on bid to sell insolvent media companies SaltWire and The Herald

By The Canadian Press on April 30, 2024.

Newspapers owned by SaltWire Network Inc. are photographed in Halifax on Tuesday, March 12, 2024. A Nova Scotia judge was greeted with good news today when he received an update on the proposed sale of the SaltWire Network and The Halifax Herald, the two financially troubled companies that operate Atlantic Canada's largest newspaper chain. THE CANADIAN PRESS/Darren Calabrese

HALIFAX – A Nova Scotia judge received good news today during an update on the proposed sale of the SaltWire Network and The Halifax Herald, two financially troubled companies that operate Atlantic Canada’s largest newspaper chain.

Those shepherding the restructuring process told Nova Scotia Supreme Court Justice John Keith that progress is being made toward securing a deal that could see all or part of the insolvent businesses sold to one or more bidders.

On March 13 and again on March 22, Keith granted the companies protection from creditors who are owed about $90 million, and another extension was granted today until June 28.

A lawyer representing the monitor overseeing the restructuring told the judge that “everything has unfolded the way it was supposed to.”

Last week, a report from the monitor – Toronto-based KSV Restructuring – confirmed that several bidders have submitted non-binding offers to buy all or part of the two companies.

The KSV report says some of those non-binding offers, if accepted, would allow the deeply indebted companies to continue operating as viable businesses.

The next step is for KSV to determine which bidders will be asked to submit binding offers by May 24 at 5 p.m., which could lead to court approval for a transaction no later than June 28 and an anticipated closing deadline of July 31.

This report by The Canadian Press was first published April 30, 2024.

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