Postmedia Restructuring Gets Approval

CBJ — The Ontario Superior Court has approved Postmedia’s proposal to restructure its $648-million debt.

Under the plan, Postmedia will exchange roughly $345 million of debt owed to its second lien debt holders into shares that will amount to a 98% stake in the company, leaving current shareholders with the remaining 2%.

The company will also issue about $110 million worth of new second lien notes that mature in July 2023 and repay $78 million of its first lien debt.

Postmedia will receive an extension until July 2021 to repay the outstanding $225 million.

Last week, the media conglomerate’s first- and second-lien debt holders, and shareholders approved the plan in what is a major victory for CEO Paul Godfrey, who spearheaded the complex restructuring plan.

Postmedia expects to complete the transaction around the end of the month, once it either satisfies or waives the remaining conditions.