Bidders express interest in buying all or part of SaltWire newspaper business
Several bidders have offered to buy all or part of SaltWire Network Inc. and The Halifax Herald Ltd., the two insolvent companies that operate Atlantic Canada's largest newspaper enterprise, a restructuring firm says.
Toronto-based KSV Restructuring Inc., in a report filed Friday, said some of those non-binding offers, if accepted, would enable the deeply indebted companies to continue operating as viable businesses.
"As of the ... bid deadline, several indicative non-binding letters of intent were submitted from interested parties for all or part of the media companies' business and assets, including offers that, if completed, would see the business continue on a going-concern basis," KSV's report says.
The one-page report does not say how many bids were received by Thursday's initial bidding deadline, and it doesn't provide any details about who submitted the bids.
More than 250 prospective purchasers and potential investors were sent so-called teaser letters and non-disclosure agreements advising them of the sale process, KSV says.
Former SaltWire president and CEO Mark Lever has said he planned to submit a bid. Court documents show SaltWire and its related companies are owned by Lever and his wife Sarah Dennis through separate family trusts that each have a 50-per-cent stake in the private businesses.
The next step is for KSV to conduct a due diligence process that will determine which bidders will be asked to submit binding offers by May 24 at 5 p.m., which could lead to court approval for a transaction no later than June 28 and an anticipated closing deadline of July 31.
The Halifax-based companies own daily newspapers in Nova Scotia, Prince Edward Island and Newfoundland and Labrador, including Halifax's Chronicle Herald, the Cape Breton Post in Sydney, N.S., the Telegram in St. John's and the Guardian in Charlottetown. They also own several digital publications.
The media companies employ about 800 independent contractors and 390 staff, which includes about 108 unionized positions.
Last week, KSV released another report confirming the media companies had met with representatives from the premiers' offices in Nova Scotia, P.E.I. and Newfoundland and Labrador to discuss the "restructuring proceedings."
As well, KSV said the media companies have cut some jobs and ended their contract with the international news agency Thomson Reuters. Bids have also been received for certain properties owned by SaltWire, including one building in St. John's, N.L., two buildings in Nova Scotia -- one in Yarmouth, the other in Sydney -- and a printing plant in the Halifax area.
On March 11, a private equity firm filed court documents to initiate insolvency proceedings against SaltWire, The Herald and their related companies. Fiera Private Debt claims SaltWire and The Herald owe the firm $32 million after several years of mismanagement.
Two days later, a Nova Scotia Supreme Court judge granted the media companies and their subsidiaries protection from creditors owed about $90 million. As well, the judge appointed KSV as the monitor overseeing the restructuring process under the Companies' Creditors Arrangement Act.
As the media companies' senior secured lender, Fiera has supported that process. Fiera loaned $500,000 to the companies on March 13 and then added another $1.5 million on March 22 to keep them operating.
That financial arrangement will continue until May 3, at which point SaltWire and The Herald will likely apply for another extension under CCAA. At that point, KSV says it will ask the court to extend creditor protection until June 28.
"The principal purpose of these CCAA proceedings is to create a stabilized environment to enable the companies, particularly the media companies, to secure financing to continue to operate while (they) pursue a restructuring or sale of their businesses and assets," KSV says in a report dated April 23.
This report by The Canadian Press was first published April 27, 2024.
For more Nova Scotia news visit our dedicated provincial page.
CTVNews.ca Top Stories
'Terrifying': Manitoba resident speaks on wildfire and evacuation
As a pair of wildfires burn near Flin Flon and The Pas, a number of Manitobans are being told to evacuate their homes.
Steve Buscemi punched in the face while walking in N.Y.C.
Hollywood actor Steve Buscemi has been treated for injuries after being punched in the face while walking in New York City.
Canucks' Zadorov fined $5,000 for post-game crosscheck on Oilers' McDavid
A Vancouver Canucks defenceman has been given the highest possible fine under the NHL's collective bargaining agreement after a scrum broke out at the end of Game 3 against the Edmonton Oilers Sunday night.
DEVELOPING Michael Cohen takes the stand as testimony in Trump hush money case enters 4th week
The star prosecution witness in Donald Trump's hush money trial is set to take the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.
Air quality advisories issued in 5 provinces, 1 territory
Air quality advisories are in effect across Western Canada as smoky conditions plague some areas, according to the latest forecasts. Here's where.
Jerry Seinfeld speech prompts pro-Palestinian demonstration at U.S. university graduation ceremony
A tiny contingent of Duke University graduates opposed pro-Israel comedian Jerry Seinfeld speaking at their commencement in North Carolina Sunday, with about 30 of the 7,000 students leaving their seats and chanting "free Palestine" amid a mix of boos and cheers.
Just how bad are ultraprocessed foods? Here are 5 things to know
Many foods fall under the category of ultraprocessed foods, depending on their exact ingredients. This type of food has been studied a lot lately, and the results aren’t great.
No refund for travellers who cancelled flight already scrapped by airline: regulator
Four years on, the controversy over whether airlines owed refunds to passengers after cancelling hundreds of thousands of flights during the pandemic continues to simmer, aggravated by a sluggish, opaque complaints process.
opinion Harry and Meghan's Nigerian adventure: Traditional attire to warm welcomes
For her latest column on CTVNews.ca, royal commentator Afua Hagan writes about Prince Harry and Meghan Markle's recent visit to Nigeria, calling it a 'deeply meaningful campaign' that was about aligning their ongoing efforts to foster mental-health awareness and promoting the Invictus Games.