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A Nova Scotia court has approved Postmedia Network Inc.’s $1-million bid to acquire SaltWire Network Inc. and The Halifax Herald Ltd.
SaltWire, Atlantic Canada’s largest newspaper chain, has struggled financially and filed for creditor protection in March, to help restructure its $51 million in debt.
Under the Companies’ Creditors Arrangement Act (CCAA), SaltWire was provided time to negotiate with its creditors and avoid bankruptcy, with court supervision.
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On July 26, Postmedia announced it had entered into a purchase agreement with SaltWire that was subject to various conditions, including satisfactory outcomes with unions and other stakeholders, the completion of definitive transaction documentation and court approval.
Union negotiations were led by CWA Canada, with president Carmel Smyth highlighting outstanding pension debts as one issue at the time the purchase agreement was announced.
SaltWire employs more than 100 local journalists and employs 390 people in total, with 25 per cent of its workforce unionized.
It is comprised of The Halifax Chronicle Herald, The St. John’s Telegram, The Charlottetown Guardian, The Cape Breton Post and six weekly papers: The Annapolis Valley Register, The Journal-Pioneer, The News, Tri-County Vanguard, Truro News, and The Valley Journal Register.
Postmedia Network Inc. Is a wholly-owned subsidiary of Postmedia Network Canada Corp., which owns media properties across Canada including the National Post and Financial Post.
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The initial outside closing date of the deal was set for Aug. 26.
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