Postmedia begins takeover of parts of SaltWire Network
The media company has been under court protection since March
Postmedia has started the process of taking over those parts of the insolvent SaltWire Network that it plans to keep running.
Atlantic Canada's largest newspaper chain has been under court protection since March, when its largest creditor forced the company into insolvency.
SaltWire publishes newspapers in Nova Scotia, Prince Edward Island and Newfoundland and Labrador, including the Halifax Chronicle Herald, the Cape Breton Post and the St. John's Telegram.
Earlier this month, a judge of the Nova Scotia Supreme Court approved Postmedia's $1-million offer to buy some of SaltWire's assets.
No one is saying yet how much of the SaltWire Network will survive.
Earlier this week, the St. John's Telegram told readers in a notice that it is publishing its final daily print edition on Saturday, Aug. 24, after which it will become a weekly newspaper.
Daily content will still be available online, with the first weekly print edition due out on Friday, Aug. 30.
During the court hearing to approve Postmedia's offer, lawyers said the Telegram's printing presses were not included in the deal.
Postmedia has been reaching out to those SaltWire employees it wants to keep. But they're being asked to keep the offers confidential while the process continues.
CBC News reached out to Postmedia on Thursday but did not receive any response by deadline.
The official transfer of ownership is scheduled for Saturday, to be followed by a transition period. The process can be extended until December, if necessary, while still under court protection.
In a statement, a spokesperson for the Nova Scotia Labour Department said the department has reached out to the employer to offer support to those affected by the changeover.
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