Corus completes recapitalization transaction, appoints new Board

Corus Entertainment Inc. has completed its previously announced recapitalization transaction, marking the final step in a restructuring plan approved by the Canadian Radio-television and Telecommunications Commission last month.

The company announced Thursday that the transaction has closed under a court-approved plan, making Corus Entertainment Inc. a wholly owned subsidiary of Corus Entertainment Holdings Inc.

“We are very pleased to complete this recapitalization transaction. Our new capital structure provides a platform that positions Corus for new opportunities and future growth,” Chief Executive Officer John Gossling said in a statement.

“As Canada’s largest independent broadcaster, we will continue to create and deliver premium content that Canadians want, and we will continue to invest in national and local news that Canadians depend on.”

The completion follows a September decision by the CRTC approving the recapitalization plan, which Corus said would significantly reduce debt and strengthen its financial position. The restructuring reduces total debt and liabilities by more than $500 million, cuts annual cash interest costs by up to $40 million and extends debt maturities by five years.

Corus, the parent company of Global News, has also appointed a new independent Board of Directors chaired by former Bell Media president Maryann Turcke. The new Board also includes senior media and advertising executive, Stuart Garvie, as chair of the operating committee, former Conservative leader Erin O’Toole as chair of the human resources and governance committee and former investment banker Jeremy Walker as chair of the audit committee. Gossling, has also been appointed to the Board of Directors and will continue in his role as CEO and (Interim) Chief Financial Officer of Corus.

“The new directors and I are excited to join Corus at this important time for the company and for our industry,” Turcke said in a statement. “Our priority is to continue to strengthen Corus’ leadership position in Canada by delivering news that Canadians trust and entertainment that Canadians love.”

O’Toole said Corus plays “a vital role not just in the media industry but also in the fabric of Canadian culture and democracy,” and noted the company’s track-record in creating and delivering “independent, high-quality journalism and Canadian programming to millions across the country.”