Postmedia Proposes Restructuring to Wipe Out Nearly Half Its Debt

Canada’s largest newspaper publisher is proposing a restructuring plan that would wipe out nearly half its debt and slash its annual interest payments, easing immediate financial pressure that threatened to turn the company insolvent.

Postmedia Network Canada Corp. outlined a planned recapitalization on Thursday that would eliminate more than $268-million (U.S.) in debt. In exchange, those creditors would receive 98 per cent of the company’s equity, all but eliminating the stake owned by existing shareholders.

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