1 of 1- RadioActive
- Moderator
Offline 
Does Corus Have New Owners?
It appears it might, after it agreed to let its debtholders effectively take over the company.
Will this affect what you see and hear? I guess we'll find out as the battle to save the broadcaster continues.
Corus Entertainment announces recapitalization deal, will swap debt for shares
- tvguy
- Member
Offline
Re: Does Corus Have New Owners?
Converting debt to equity raises a lot of regulatory hurdles.
Depending on the ownership qualifications of the debholders, foreign debtholders would be restricted to no omre than 19.9% of voting equity. So, much of the debt may be converted to non-voting shares. Add to that restrictons on the appointment of directors and officers by the debtholders. There are several cases where the CRTC imposed significant restrictions including the acquisition of Alliance Atlantis, and the proposed acquisition of Bell Media - which did not proceed to a completed transaction.
- Binson Echorec
- Member
Offline
Re: Does Corus Have New Owners?
RadioActive wrote:
Maybe this move will help with their writing, from the Global article:
"A move it says will significantly strengthening its financial position."
- Aytononline
- Member
Offline
Re: Does Corus Have New Owners?
This news did not seem to help the stock price. Its now at 8 cents.
- RadioActive
- Moderator
Offline
Re: Does Corus Have New Owners?
So it went from 10 cents to 8 after this announcement? I'm pretty sure that wasn't what they were aiming for. Eight cents a share! Almost worth buying some stock using mad money to see if it bounces back.
- •
Thread Starter- Binson Echorec
- Member
Offline
Re: Does Corus Have New Owners?
So it went from 10 cents to 8 after this announcement? I'm pretty sure that wasn't what they were aiming for. Eight cents a share! Almost worth buying some stock using mad money to see if it bounces back.
Do I want to buy a case of beer or 60% of Corus?
- jon
- Member
Offline
Re: Does Corus Have New Owners?
Not sure what a Corus Class A voting share would be worth right now if it was sold on the open market, but I still find it interesting that the voting and non-voting shares will effectively be merged and worth the same (one for one swap), as each Share will become a publicly-traded share on the TSX of a new company.