The Chronicle Herald sign is seen in Halifax on Thursday, April 13, 2017.THE CANADIAN PRESS/Andrew Vaughan AV
Multiple parties have expressed interest in purchasing all or part of SaltWire Network Inc. and The Halifax Herald Ltd., both of which are insolvent. The restructuring firm overseeing the process, KSV Restructuring Inc., revealed in a report that several non-binding bids have been made, some of which could potentially allow the financially troubled companies to continue operating successfully.
The report, filed by KSV Restructuring Inc. on a recent Friday, indicates that various offers have been submitted by interested parties. These offers, if accepted, could pave the way for SaltWire and The Halifax Herald to remain operational as viable businesses. However, the report does not specify the number of bids received by the initial deadline, nor does it disclose the identities of the bidders.
KSV Restructuring Inc. states that more than 250 potential buyers and investors were informed about the sale process through teaser letters and non-disclosure agreements. Among those planning to bid is Mark Lever, the former president and CEO of SaltWire. Court documents reveal that Lever and his wife, Sarah Dennis, own SaltWire and its related entities through separate family trusts, each with a 50% stake in the businesses.
The next phase of the process involves KSV conducting due diligence to assess the bids. Following this, selected bidders will be invited to submit binding offers by May 24. If successful, the transaction could receive court approval by June 28, with a targeted closing date of July 31.
SaltWire Network Inc. and The Halifax Herald Ltd. are based in Halifax and operate daily newspapers across Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. These include prominent publications such as the Chronicle Herald in Halifax, the Cape Breton Post, the Telegram in St. John's, and the Guardian in Charlottetown, along with various digital platforms. The companies employ approximately 800 independent contractors and 390 staff members, including 108 unionized positions.
Recent developments indicate that the media companies have taken steps to streamline operations, including job cuts and terminating their contract with Thomson Reuters. Additionally, bids have been received for certain properties owned by SaltWire, including buildings in St. John's, Yarmouth, and Sydney, as well as a printing plant in the Halifax area.
The financial difficulties facing SaltWire and The Halifax Herald began in March when a private equity firm, Fiera Private Debt, initiated insolvency proceedings against them, claiming a debt of $32 million due to alleged mismanagement. Subsequently, the Nova Scotia Supreme Court granted the companies protection from creditors, appointing KSV as the monitor overseeing the restructuring process under the Companies' Creditors Arrangement Act.
Fiera has provided financial support to keep the companies operational, extending loans of $500,000 and $1.5 million in March. This arrangement is set to continue until May 3, with an anticipated extension sought under the CCAA until June 28.
The primary objective of the CCAA proceedings is to create a stable environment for the companies to secure financing and pursue restructuring or sale opportunities. KSV emphasizes the importance of maintaining operations during this process to facilitate a successful outcome for SaltWire Network Inc. and The Halifax Herald Ltd.
