Bid to sell insolvent newspaper chain in Atlantic Canada reaches critical phase
The private lending firm that pushed Atlantic Canada’s largest newspaper chain into insolvency in March says negotiations aimed at selling SaltWire Network Inc. and The Halifax Herald Ltd. have reached a critical phase.
Jennifer Stam, a lawyer for the Fiera Private Debt Fund, made the statement today in Nova Scotia Supreme Court, where Justice John Keith later approved a motion to extend the media companies’ protection from creditors until Aug. 8.
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Last week, the court-appointed monitor overseeing the potential sale of the deeply indebted companies confirmed the selection of an unnamed bidder who has plans to operate the companies as viable businesses.
At the time, Toronto-based KSV Restructuring Inc. said negotiations with the bidder were advancing toward a transaction that could be completed by Aug. 9.
Today, a lawyer representing KSV, George Benchetrit, said an approved transaction could come sooner than that date.
Meanwhile, Keith also approved a $135,000 retention plan to ensure the assistance of key employees needed to complete the sale.
He also approved an additional $1.1 million in interim financing, which will bring total projected borrowing during the insolvency proceedings to $4.1 million.
This report by The Canadian Press was first published June 28, 2024.