HALIFAX –
A number of bidders have supplied to purchase all or a part of SaltWire Community Inc. and The Halifax Herald Ltd., the 2 bancrupt corporations that function Atlantic Canada’s largest newspaper enterprise, a restructuring agency says.
Toronto-based KSV Restructuring Inc., in a report filed Friday, mentioned a few of these non-binding provides, if accepted, would allow the deeply indebted corporations to proceed working as viable companies.
“As of the … bid deadline, a number of indicative non-binding letters of intent have been submitted from events for all or a part of the media corporations’ enterprise and belongings, together with provides that, if accomplished, would see the enterprise proceed on a going-concern foundation,” KSV’s report says.
The one-page report doesn’t say what number of bids have been acquired by Thursday’s preliminary bidding deadline, and it does not present any particulars about who submitted the bids.
Greater than 250 potential purchasers and potential buyers have been despatched so-called teaser letters and non-disclosure agreements advising them of the sale course of, KSV says.
Former SaltWire president and CEO Mark Lever has mentioned he deliberate to submit a bid. Courtroom paperwork present SaltWire and its associated corporations are owned by Lever and his spouse Sarah Dennis by means of separate household trusts that every have a 50-per-cent stake within the personal companies.
The following step is for KSV to conduct a due diligence course of that may decide which bidders will likely be requested to submit binding provides by Might 24 at 5 p.m., which might result in courtroom approval for a transaction no later than June 28 and an anticipated closing deadline of July 31.
The Halifax-based corporations personal day by day newspapers in Nova Scotia, Prince Edward Island and Newfoundland and Labrador, together with Halifax’s Chronicle Herald, the Cape Breton Publish in Sydney, N.S., the Telegram in St. John’s and the Guardian in Charlottetown. In addition they personal a number of digital publications.
The media corporations make use of about 800 unbiased contractors and 390 workers, which incorporates about 108 unionized positions.
Final week, KSV launched one other report confirming the media corporations had met with representatives from the premiers’ places of work in Nova Scotia, P.E.I. and Newfoundland and Labrador to debate the “restructuring proceedings.”
As properly, KSV mentioned the media corporations have lower some jobs and ended their contract with the worldwide information company Thomson Reuters. Bids have additionally been acquired for sure properties owned by SaltWire, together with one constructing in St. John’s, N.L., two buildings in Nova Scotia — one in Yarmouth, the opposite in Sydney —
 and a printing plant within the Halifax space.
On March 11, a personal fairness agency filed courtroom paperwork to provoke insolvency proceedings towards SaltWire, The Herald and their associated corporations. Fiera Non-public Debt claims SaltWire and The Herald owe the agency $32 million after a number of years of mismanagement.
Two days later, a Nova Scotia Supreme Courtroom decide granted the media corporations and their subsidiaries safety from collectors owed about $90 million. As properly, the decide appointed KSV because the monitor overseeing the restructuring course of below the Firms’ Collectors Association Act.
Because the media corporations’ senior secured lender, Fiera has supported that course of. Fiera loaned $500,000 to the businesses on March 13 after which added one other $1.5 million on March 22 to maintain them working.
That monetary association will proceed till Might 3, at which level SaltWire and The Herald will possible apply for one more extension below CCAA. At that time, KSV says it should ask the courtroom to increase creditor safety till June 28.
“The principal function of those CCAA proceedings is to create a stabilized atmosphere to allow the businesses, notably the media corporations, to safe financing to proceed to function whereas (they) pursue a restructuring or sale of their companies and belongings,” KSV says in a report dated April 23.
This report by The Canadian Press was first revealed April 27, 2024.
