With declining revenues and a large debt burden, the proposed merger does little to address the financial challenges the company will face, say industry experts
will lighten a crippling debt load for one of the partners, Postmedia Network Canada Corp., but industry experts say the union would do little to address the media companies’ structural challenges., which is making interest payments on its $288-million in debt by borrowing more money from hedge fund lenders, is in talks to combine forces with Torstar owner Nordstar Capital LP. Postmedia owns 130 properties, including papers in most major Canadian cities, while Nordstar owns about 70 titles.
New Jersey-based hedge fund Chatham Asset Management LLC will swap almost all of its $262-million in loans to Postmedia for equity in the combined companies, according to two sources familiar with the terms of the proposed transaction. The Globe and Mail agreed not to name the sources because they are not authorized to speak for the companies.
Postmedia also owes $26-million to Toronto-based asset manager Canso Investment Counsel Ltd. and the sources said this loan will be paid down by the combined companies. Postmedia’s track record does not inspire confidence that a merger with Nordstar’s newspaper properties will reverse these trends, said Dwayne Winseck, a journalism and communications professor at Carleton University. “Postmedia has now had a run at this since 2010,” he said, referring to the company’s formation out of the bankruptcy of Canwest Global Communications Corp. “The Postmedia properties have gone from being a venerable publishing group to being decimated.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Toronto Star owner in talks to merge with PostmediaNordStar, Postmedia would have 50% voting stake in a new company that would control most of the combined assets of both. Toronto Star would be spun into second company controlled by NordStar.
Read more »
Owner of Toronto Star in talks to merge Postmedia chain with Metroland community papersParent companies in talks to merge Postmedia newspaper chain with Metroland community newspapers
Read more »
Toronto Star owner Nordstar in talks to merge with PostmediaPostmedia Network Canada Corp. says it is in talks to merge with Nordstar Capital LP, the owner of Metroland Media Group and the Toronto Star.
Read more »
Toronto Star owner Nordstar in talks to merge with Postmedia - BNN BloombergPostmedia Network Canada Corp. has confirmed that it is in talks to merge with Nordstar Capital LP, the owner of Metroland Media Group and the Toronto Star.
Read more »
Toronto Star owner Nordstar in talks to merge with Postmedia | National NewswatchNational Newswatch: Canada's most comprehensive site for political news and views. Make it a daily habit.
Read more »