A Nova Scotia Supreme Court judge has provided some temporary stability to a company that owns nearly two dozen newspapers in Atlantic Canada.
SaltWire Network sought credit protection after its main creditor, Fiera Private Debt, declared the media company unable to repay a $32 million loan, leaving SaltWire with debts exceeding $63 million.
Justice John Keith ruled that KSV Advisory, Fiera’s financial adviser, will oversee SaltWire’s restructuring. He rejected SaltWire’s request to appoint Grant Thornton as monitor, deeming it “unusual” to have competing applications in such cases.
Keith justified selecting KSV as a monitor, noting their six months of involvement compared to Thornton’s recent engagement. SaltWire’s lawyer, Maurice Chiasson, argued that KSV prioritizes Fiera’s economic interests, neglecting employees and the communities served by the newspapers.
Jennifer Stam, representing Fiera, reassured the court, the public, and SaltWire that Fiera did not intend to shut down the company or liquidate its assets.
Keith also mandated that Fiera provide SaltWire with $500,000 in interim financial aid to sustain operations for the next 10 days.
