Nova Scotia judge grants extension in SaltWire creditor case
Groups interested in purchasing the company have until May 24 to come up with serious bids
The company that owns most of the English-language daily newspapers in Atlantic Canada has been given a little more time to come up with a survival plan.
SaltWire is saddled with tens of millions of dollars in debt and its main creditor, Fiera, forced it into creditor protection.
On Tuesday morning, a justice of the Nova Scotia Supreme Court agreed to extend that protection for a few more weeks while a search for a buyer for all or part of the SaltWire group continues.
Toronto-based KSV Restructuring is the company overseeing the effort.
Company representatives told Justice John Keith several potential bidders have expressed interest in all or part of the media group. They now have until May 24 to turn those expressions of interest into serious bids.
Next court date
The next court is set for the end of June, when Keith said he hopes there will be good news about the outcome.
But the judge has also given tentative approval to efforts to sell Titan Security, a subsidiary of SaltWire, as an independent, going concern. As the name implies, the security firm is not directly connected to SaltWire's core media operations.
Another subsidiary called Headline Promotional Products is being shut down, putting 10 people out of work.
KSV officials told Keith that revenue for SaltWire is down slightly but the company is still functioning. SaltWire owns newspapers in Nova Scotia, Newfoundland and Prince Edward Island.
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