TORONTO - The Ontario Superior Court has approved Postmedia's proposal to restructure its $648-million debt.
Under the plan, Postmedia will exchange roughly $345 million of debt owed to its second lien debt holders into shares that will amount to a 98 per cent stake in the company, leaving current shareholders with the remaining two per cent.
The company will also issue about $110 million worth of new second lien notes that mature in July 2023 and repay $78 million of its first lien debt.
Postmedia will receive an extension until July 2021 to repay the outstanding $225 million.
Last week, the media conglomerate's first- and second-lien debt holders, and shareholders approved the plan.
Postmedia expects to complete the transaction around the end of the month, once it either satisfies or waives the remaining conditions.