Who Still Believes Postmedia Is Canadian-Controlled? - 2016-07-08
Postmedia's escape from bankruptcy this week offers at least a tiny opportunity for critics who want the giant corporation's grip on Canadian newspapers loosened.
Postmedia, which owns the Sun, Province, and 24 Hours in Vancouver and 170-plus newspapers across the country, has been stumbling toward insolvency. Its stock is almost worthless, revenues are in freefall -- down another 12.9 per cent according to Thursday's quarterly report -- and management has no credible plan. It's barely able to pay the interest on its $648-million debt.
So Postmedia went to the people who were owed that money and cut a deal, giving control of Canada's largest newspaper company to an "ad hoc" group of creditors apparently led by Chatham Asset Management, a New Jersey hedge fund.