TORONTO (Reuters) - Debt and equity investors in Canada’s largest newspaper publisher have approved a restructuring plan that will give creditors nearly all of its equity and slash its debt obligations, Postmedia Network Canada Corp (PNCa.TO) said on Wednesday.
Postmedia, which owns the National Post, Montreal Gazette, Calgary Herald, Ottawa Citizen and Sun tabloids in Toronto, Calgary, Edmonton, Ottawa and Winnipeg, said that 99.9 percent of shareholder votes cast were in favor while two separate tiers of debtholders cast 100 percent of their votes in favor.
Those votes in favor represented around 93 percent of outstanding shares, 95 percent of first-lien notes, and 80 percent of second-lien notes.
The company had proposed the recapitalization in July, as it struggled to juggle its heavy debt load and falling print advertising revenue.
Under the terms of the deal, existing shareholders will see their combined equity stake shrink to 2 percent, while existing second-lien debtholders will exchange those loans for the remaining equity.
The company will seek court approval for the plan at a hearing on Sept. 12.
Reporting by Alastair Sharp; Editing by Sandra Maler