Sisi Chan

Corus to seek court approval of recapitalization plan after shareholder vote narrowly fails

Corus Entertainment, the parent company of Global News, is set to seek court approval for a recapitalization plan that failed to receive the necessary support in a shareholder vote. With a voting result that just fell short of the required two-thirds majority, the company is hopeful that court clearance will pave way for their strategic recovery.

Although the majority of shareholders voted in favor of the recapitalization, it was not enough to secure the two-thirds approval needed for implementation. The proposal was strongly backed by board member, Mark Hollinger, who reiterated its fairness and viability for Corus’s secure future.

The court hearing for recapitalization approval is scheduled for March 12, 2026.

Corus agreed a deal with its lenders last November to restructure its $1.1 billion debt, a move designed to strengthen its financial foothold. This deal, however, awaits clearance from CRTC and the courts. The conditions of the deal encompass substantial debt reduction and cuts to cash interest.

John Gossling, CEO of Corus Entertainment, emphasizes the transformative power of the proposed transaction on the company’s financial stability, contending that it will furnish a robust foundation for the company.

The company has been grappling with financial difficulties, high competition, and regulatory challenges, prompting Corus to adopt cost-cutting measures. The reorganization plan targets enhanced liquidity and cost efficiency, coupled with expanded focus on digital media growth prospects.

Gossling outlines a renewed strategy characterized by stringent cost and cash management, pursuit of operational efficiencies, and concentration on digital service offerings and revenue augmentation channels.