Regional newspaper publisher Metroland Media Group Ltd. is offering to pay its unsecured creditors 13 cents on the dollar in an effort to keep from going bankrupt.
In September, Metroland owner Nordstar Capital LP said it intended to put its regional newspaper business into bankruptcy protection, The proposed payments are subject to votes from creditors on Nov. 14. Under the Bankruptcy and Insolvency Act, if creditors vote against the proposal, the company is deemed automatically bankrupt.
The trustee, Grant Thornton Limited, has recommended that the unsecured creditors accept the proposal. In its report, Grant Thornton said the company’s inventory, machinery and equipment have no liquidation value, and that extracting value from the company’s intellectual property would be a lengthy and expensive process. The company holds equity investments of $20-million but these likely have “no realizable value,” Grant Thornton said.
Torstar itself was acquired by Nordstar for $52-million in 2020. Torstar spokesperson Bob Hepburn said the company would not comment on any information that is part of the court process.