Corus completes $350m recapitalisation, Maryann Turcke named board chair

John Gossling

Canadian broacasting group Corus Entertainment has completed a recapitalisation that will see some of its lenders take control in a debt-for-equity exchange.

Under the deal, a lender group led by Toronto-based portfolio management firm Canso Investment has agreed to forgive around C$500m (US$352m) in debt in exchange for a 99% stake in a newly formed entity, Corus Entertainment Holdings (fka NewCo), which will house Corus’s TV and radio assets.

The official close of the deal comes three weeks after local broadcasting regulator, the Canadian Radio-television and Telecommunications Commission, approved the plan, clearing the way for the transaction to close.

As part of the agreement, Corus has named a new board of directors, including veteran media executive Maryann Turcke, who will serve as chair. Turcke served as president of Bell Media from 2014-2017 before moving to the National Football League where she served as chief operating officer.

Also joining the board is former Stuart Garvie, the former CEO of GroupM Canada and president of media sales and marketing at Bell Media; Erin O’Toole, who currently serves as the president and managing director of ADIT North America; and Jeremy Walker, the former deputy chair and global head of TD Securities.

Corus’s CEO and interim chief financial officer John Gossling, who has steered the company through the recapitalisation process, is also joining the board of the newly formed entity.

The conclusion to the transaction puts Corus on much surer financial footing after years spent facing the prospect of creditor protection or bankruptcy as it struggled under more than C$1bn in debt.

The repayment of said debt became increasingly challenging as Corus’s main profit centre, its cable TV business, continued to shrink amid cord cutting and advertising revenue declines. After several setbacks, including losing the licensing and Canadian trademark agreements to Warner Bros Discovery’s suite of lifestyle brands, Corus’s stock sank to around 10 cents per share in 2024 and never recovered.

The close of the recapitalisation comes around 11 months after Corus first officially floated the plan. Corus’s survival is a positive development for the local industry, as it remains active in unscripted and news, as well as commissioning and co-commissioning a small number of scripted shows, including Private Eyes West Coast.

“We are very pleased to complete this Recapitalization Transaction. Our new capital structure provides a platform that positions Corus for new opportunities and future growth,” said Gossling.

“As Canada’s largest independent broadcaster, we will continue to create and deliver premium content that Canadians want, and we will continue to invest in national and local news that Canadians depend on.”

Turcke added: “The new directors and I are excited to join Corus at this important time for the Company and for our industry, Our priority is to continue to strengthen Corus’ leadership position in Canada by delivering news that Canadians trust and entertainment that Canadians love. We want to build a business that is resilient and will grow into the future, and look forward to working with all of our stakeholders to build a world class, sustainable, and independent media and broadcast industry in Canada, with Corus as a strong and successful player.”