A judge in Nova Scotia has agreed to a request on Wednesday to shield the biggest newspaper company in Atlantic Canada from the people it owes money to. SaltWire Network Inc. is trying to get out of insolvency by coming up with a plan to reorganize.
Judge John Keith in Nova Scotia Supreme Court has also picked a monitor to manage the process under the Companies’ Creditors Arrangement Act. This act lets companies in financial trouble avoid going bankrupt while they come up with a plan to survive and make sure the people they owe money to get some payment.
There were a lot of legal arguments during the emergency court hearing because SaltWire wanted to have a different monitor from the one recommended by the private equity firm Fiera Private Debt. The firm says it is owed $32.7 million, plus almost $600,000 of interest, according to court documents.
SaltWire's lawyer Maurice Chiasson said the monitor suggested by Fiera, who is from Toronto-based KSV Restructuring Inc., would not be a good choice because the company has been serving as Fiera’s financial adviser and does not have a presence in Atlantic Canada.
Chiasson asked the judge to pick a monitor from Grant Thornton’s office in Halifax, but Keith refused, saying KSV would lead the reorganization because SaltWire had previously made an agreement with Fiera about the process.
The judge also dismissed SaltWire’s complaint that KSV had been hard to work with as Fiera’s financial adviser, saying it's normal to have tension and he's sure KSV can remain unbiased and independent as a monitor.
This report by The Canadian Press was originally published on March 13, 2024.
