Corus Entertainment, the parent company of Global News, said Friday the company intends to seek Court approval of a previously announced recapitalization plan after it failed to pass in a vote of shareholders.
While over 99 per cent of Senior Noteholders and Class A shareholders voted in favour of the recapitalization plan, only 29.8 per cent of Class B shareholders voted. Of those who voted, 61.2 per cent voted in favor of the deal, falling short of the two-thirds required.
“We continue to strongly believe that the Recapitalization Transaction is fair and reasonable and in the best interests of Corus and its stakeholders. It represents the best viable option to secure Corus’ future while preserving the most shareholder value,” said Mark Hollinger, Independent Lead Director of the Board. “In other restructuring scenarios, it is unlikely that shareholders will recover any amounts.”
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A court hearing where Corus will seek approval of the recapitalization plan is scheduled for March 12, 2026.
Corus Entertainment reached the proposed deal with its secured lenders in November, as an attempt to restructure the company’s $1.1 billion of debt – a move it said would significantly strengthen its financial position. The deal is subject to CRTC and court approval.
The deal included a reduction of total debt and liabilities by more than $500 million and a slashing of annual cash interest by up to $40 million.
“The proposed transaction will solidify our financial foundation and position Corus for the long-term,” said John Gossling, Corus Entertainment Chief Executive Officer, when the proposed recapitalization was proposed in November 2025.
Faced with declining advertising revenue, heightened competition from streaming services and a challenging regulatory environment, Corus has undergone a series of cost-cutting measures in recent years, including layoffs.
The company previously said the new deal would provide the company with more flexibility and liquidity as it continues to seek cost efficiencies while exploring new opportunities in growth areas, such as digital media.
“In addition to right-sizing the balance sheet, we intend to continue executing our strategic plan. This includes focusing on attractive opportunities or partnerships to enhance revenue and value, including through a focus on digital services and products, as well as maintaining discipline over costs and cash management, and finding additional operational efficiencies,” Mr. Gossling said in November 2025.
© 2026 Global News, a division of Corus Entertainment Inc.
