Black Press enters creditor protection; sale of company pending
The largest non-daily newspaper publisher of newspapers in B.C. has entered creditor protection under the Companies’ Creditors Arrangement Act (CCAA).
Black Press entered the CCAA proceedings — a statute of the Parliament of Canada that allows insolvent corporations owing creditors in excess of $5 million to restructure their business and financial affairs — on Jan. 15, as well as constructing a sales agreement (through a support agreement and term sheet) to Canso, Deans Knight Capital Management Ltd. and Carpenter Media Group.
The support agreement and term sheet “contemplate a sale of the company’s business” — which includes the Nelson Star, Castlegar News, Trail Times, Rossland News and Grand Forks Gazette — to the group, which could be completed by Jan. 25.
“Among other things, the transaction will address the company’s obligations to its secured creditors and will include an injection of capital that will enable Black Press to continue serving readers, advertisers and other valued stakeholders,” noted a press release on the Black Press website.
Although the sale did not confirm or deny any publication closures or employee layoffs, the press release did say the sale would “put the company on solid and sustainable financial footing, enabling it to continue to serve its” readers over the long term.
Black Press Media is expected to operate its local news publications within Canada, with its head office remaining in Surrey.
As well, Black Press announced the retirement of president and majority owner David Black, who founded Black Press in 1975. At its height, the company extended across Canada and the United States and published 150 daily and weekly newspapers, magazines and websites.
The Black Press CCAA proceedings’ details will be made available on the monitor’s website at: www.ksvadvisory.com/experience/case/black-press.