“Postmedia Bond Plunge Signals End of Godfrey’s U.S. Debt ‘Noose’” by Ari Altstedter, Bloomberg Bloomberg quotes Montreal lawyer Niko Veilleux in an article about the debt facing Canada’s largest newspaper chain and the speculation of looming debt restructuring.
"If you get rid of that debt or significantly reduce that debt I believe the newspaper business is a viable business," said Niko Veilleux, a partner at Montreal law firm Fasken Martineau who represented Quebecor in the 2014 sale. He says a restructuring that converts Postmedia’s second-lien bonds into equity would be one way to do that. "This is an industry that’s declining, but it’s not disappearing."
"Most likely the current value of the company is barely sufficient to cover the senior lenders’ position," said Fasken Martineau’s Veilleux. "I don’t think there would be anything left."