Quebecor urges lenders to discount Corus debt amid possible takeover: report

Quebecor is reportedly urging lenders to write off 60 percent or more of Corus’ $1.05 billion debt as part of the pre-takeover restructuring.

The details come via the Globe and Mail, which spoke with two sources “familiar with the transaction” and builds on recent reporting about a potential acquisition. The news comes as Corus’ leading lenders, including RBC and TD, gave Corus additional time to address its financial issues.

The Globe said that Quebecor is urging lenders to do court-supervised creditor restructuring. Analysts and credit rating agencies say Corus has other options, including selling assets like Global TV or a debt-for-equity swap.

Corus reportedly hasn’t seriously engaged in talks with Quebecor.

Analysts told the Globe that acquiring Corus could benefit Quebecor in the short-term, assuming it gets a good price, but want to see Quebecor focus on investing in telecom assets.

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Source: The Globe and Mail