CRTC should reject Corus’ recapitalization plan, minority shareholders say

TORONTO – A group of minority shareholders is urging the CRTC to reject Corus Entertainment Inc.’s proposed recapitalization plan if the floundering broadcaster doesn’t commit to maintaining its editorial diversity and local news coverage, nor share other key details surrounding its future.

The group, which says it holds more than 10 million shares in the company, filed a formal intervention with the CRTC on Monday as the regulator reviews the proposed transaction. The commission launched a consultation into the deal last month, setting a deadline of this Thursday for parties to submit comments.

In March, Corus received an order from the Ontario Superior Court to proceed with its recapitalization plan, but still awaits regulatory approval. It formally applied to the CRTC for that green light in February.

The deal, if approved, would see a change in ownership shifting effective control of all licensed programming services operated by Corus and its subsidiaries.

Under the proposal, some of Corus’ lenders would forgive approximately $500 million in debt in exchange for 99 per cent ownership of a newly created parent corporation, dubbed NewCo, which would wholly own Corus and its services. Existing Corus shareholders would be expected to swap their holdings for shares that together would represent the remaining one per cent of the new company.

Corus sought court approval for the proposal after a shareholder vote in January failed to pass.

At that time, approximately 99.9 per cent of votes cast by senior noteholders were in favour of the proposal, as were 99.7 per cent of votes cast by Class A shareholders. However, holders of just 61.2 per cent of the company’s Class B shares that voted were in favour of the deal, falling short of the two-thirds threshold required.

Monday’s letter was submitted by a group representing around five per cent of Corus’ outstanding Class B shareholders, including 13 individuals and three companies. The group said it opposes a deal that changes effective control of Corus and argued the proposal raises concerns about whether the company’s plan is in the public interest.

The group also called for a public hearing on the matter given the potential impact it could have on the Canadian broadcasting industry.

“This is probably the most important … transaction in the media industry in Canada this decade,” said Sébastien Ouellet, a spokesperson for the group and signatory to the letter.

“I think it’s one of those cases that in two or three years we’ll look back and say, ‘Oh, we should have looked into it before.'”

Those shareholders raised particular concern about the potential role of Canso Investment Counsel Ltd., which Corus has said is expected to hold more than 44 per cent of the voting shares in NewCo, making it the new entity’s largest shareholder. While the regulator said Canso is effectively controlled by John Carswell, the letter said that company has refused to disclose the identity of eight of its investors.

As an investment fund rather than a media operator, Canso lacks the experience needed to operate radio and television networks, according to the letter. The document said Canso has also not indicated how it plans to help Corus cope with difficult market conditions and develop new content.

Corus did not immediately respond to a request for comment on Tuesday.

In addition, the minority shareholders said the deal risks creating financial incentives for cost-cutting rather than maintaining local service, which could result in Corus shutting down local stations and reducing staff.

Ouellet said he believes Canso’s main goal is to recoup its investment rather than grow the business.

“What will be their first move when they start owning the company? Is it to reinject a few hundred million dollars to grow the company or it will be to sell some assets, liquidate stuff, close some branches and get as much money as possible from the company to repay themselves?” he said in an interview.

“I don’t see Canso having any plan of any sorts … We should ask a lot of questions to Canso and to Corus to understand what’s their next steps.”

The CRTC said Corus has indicated the deal is necessary to address its high debt load and improve its financial stability so it can continue to operate its services. No new broadcasting licences or changes to existing conditions of service were requested.

Mark Hollinger, lead independent director of the Corus board, has said the deal represents the “best viable option to secure Corus’ future while preserving the most shareholder value.” The company has said it will lead to annual cash interest savings of up to $40 million and preserve Corus “in its vital role as a leading independent Canadian broadcaster.”

The minority shareholders submitted a list of requirements they believe the commission should impose on Corus, arguing to reject the deal if the company does not meet them.

That includes Corus having to fully disclose the identity of the lenders participating in the transaction, along with filing a detailed governance plan for NewCo that includes the composition of the board of directors, oversight mechanisms, and compliance measures to ensure adherence to Canadian broadcasting requirements.

The letter said the commission should also impose measurable and enforceable commitments from Corus regarding its plan to maintain the editorial diversity, local news, and regional services it currently offers.

It urged the CRTC to further require Corus to demonstrate its proposal was the only viable option under the circumstances and that it considered alternative solutions less disruptive to the Canadian broadcasting system.

This report by The Canadian Press was first published June 23, 2026.

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