By Adriano Marchese
Corus Entertainment has secured court approval to move ahead with its planned recapitalization as it looks to restructure and reduce its heavy debt burden.
The embattled Canadian media company received an order from the Ontario Superior Court of Justice to proceed with its recapitalization transaction, it said late Tuesday.
Corus has been facing a drawn-out decline in-step with collapsing TV revenues and burdened by a crippling debt load it could no longer support. Years of cord-cutting gutted its subscriber fees, weakening incoming advertising dollars, all made worse by streaming giants which pulled audiences away.
At the same time, Corus has carried heavy debt loads from past expansion, leaving it financially exposed as cash flows dwindled.
The combination forced the broadcaster into pursuing a recapitalization plan to stay afloat. In November, Corus said that it would embark on a major financial restructuring to avoid collapse, agreeing to give 99% of the ownership of the company to its bondholders in exchange for removing more than C$500 million of debt from its balance sheet.
Shares traded 14% lower on Wednesday, down to 3 Canadian cents (2 cents). The stock has seen nearly all of its value get wiped out over the past years. The company had reached a peak market value of C$3.14 billion in 2006. Including Wednesday's decline, the company is now valued at C$6 million.
The restructuring was the best option available to save the company, the board said in November.
The recapitalization still needs support from key stakeholders and several regulatory approvals, including sign-off from the Canadian Radio-Television and Telecommunications Commission, the federal regulator that oversees broadcasting and telecom in Canada.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 25, 2026 11:33 ET (15:33 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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