January 22, 2024 By PrintAction Staff
Black Press and some of its subsidiaries have obtained an initial order under the Companies’ Creditors Arrangement Act (CCAA) from the Supreme Court of British Columbia in Vancouver.
The initial order provides for, among other things, a stay of proceedings in favour of the Company, the approval of debtor-in-possession financing to be provided by Canso Investment Counsel, and the appointment of KSV Restructuring as monitor of the Company. The Order also extends the stay of proceedings to certain subsidiaries of the Company that are not petitioners in the CCAA proceedings.
In connection with the CCAA Proceedings, the Company has entered into a support agreement and transaction term sheet with Canso, Deans Knight Capital Management, both long-time partners of the Company, and Carpenter Media Group. The support agreement and term sheet contemplate a sale of the Company’s business to Carpenter Media Group.
In that regard, the Company intends to seek court approval to launch a sale and investment solicitation process for its business and assets. If approved by court, the transaction will serve as the stalking horse bid in the SISP.
Among other things, the transaction will address the Company’s obligations to its secured creditors and will include an injection of capital that will enable Black Press to continue serving readers, advertisers and other stakeholders. It also brings additional expertise in successful management of local media, as well as the continued support of Deans Knight and Canso, large Canadian institutional investors with a long-term focus, a history of supporting the Company and significant experience in the media sector. Under the terms of the transaction, the Company will continue to be Canadian-controlled.
Black Press also intends to seek recognition of the CCAA Proceedings in the United States pursuant to Chapter 15 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware.
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