The Globe and Mail, in its Thursday edition, ponders who is better qualified to run one of the country's largest television and radio networks: Pierre Karl Peladeau or a vulture debt fund. The Globe's Andrew Willis writes that this is a critical question for regulators as restructuring talks at Corus Entertainment continue. The answer is clear: Mr. Peladeau, the chief executive officer of Quebecor, is by far the best potential owner of Global TV.
Corus Entertainment consists of several well-known media properties but is struggling with a significant debt burden. Past acquisitions have left the company owing lenders $1.05-billion.
Corus breached its debt covenants this summer and is negotiating a restructuring with its lenders, led by the Royal Bank of Canada and Toronto-Dominion Bank. Although the latest deadline for negotiations has passed, Corus confirmed it still has access to credit and will update investors on its discussions when it releases financial results on Oct. 25.
Mr. Peladeau and his colleagues at Quebecor have been stalking Corus since January. At the right price -- which analysts calculate is at least 60 per cent below the face value of Corus's debt -- Quebecor sees the potential to reboot Global TV.
© 2024 Canjex Publishing Ltd. All rights reserved.