According to analysts, investment bankers, and media executives, this extension allows Corus more time to address its financial difficulties without forcing lenders to accept significant loan losses.
Quebecor, led by CEO Pierre Karl Péladeau, first expressed interest in acquiring Corus in January. However, a deal remains contingent on lenders agreeing to a significant debt write-off.
Sources indicate Quebecor is pushing for a court-supervised creditor restructuring, though Corus has yet to enter serious takeover talks. Analysts suggest other options are available to Corus, such as selling assets or engaging in a debt-for-equity swap with noteholders.
Corus currently owes $312m in loans secured against its assets, while an additional $750m in unsecured notes matures in 2028 and 2030. As of last week, these notes were trading at 40 cents on the dollar, signalling investor expectations of a restructuring.
Maher Yaghi, an analyst at Scotiabank, noted, “If Quebecor were to make a bid, we would expect it to occur within a debt-restructuring initiative. We don’t think Quebecor would pay north of $400m in enterprise value for Corus.”