Groupe Capitales Médias, a Quebec City, Quebec-based media company, filed an NOI on August 19, listing approximately $25.9 million in liabilities, including $8.0 million to Investissement Québec. The company was created in 2015 to purchase all the daily newspapers outside of Montreal that were at the time owned by Gesca, a Power Corporation entity. The newspapers are Le Soleil (Québec), Le Quotidien (Saguenay), Le Nouvelliste (Trois Rivières), La Tribune (Sherbrooke), La Voix de l'Est (Granby) and Le Droit (Ottawa). The sole shareholder is Martin Cauchon, a former Federal Minister of Justice. Attributing its financial difficulties to an erosion of advertising revenue to global digital players such as Facebook and Google, and to a lesser extent lower circulation, the company has been unprofitable in the past three years and has run out of cash. PwC is the proposal trustee and interim receiver and will be launching a sales process for the business in September. Counsel is Stikeman Elliott for IQ, DS Avocats for the company and McCarthy Tétrault for PwC.
Intercity Broadcasting Network, a Toronto, Ontario-based company that operates the G98.7 radio station, was placed in investigative receivership on June 3 on application by Jamrock Broadcasting and Delford Blythe. Officially launched in 2011 by Fitzroy Gordon, the radio station focused on programming for the Caribbean-African community in the Greater Toronto Area. Blythe, a minority stakeholder and former senior executive of the station, brought an application in 2016 for relief from corporate oppression after he was stripped of his management roles after discovering what he alleges was financial mismanagement of the station by Gordon. Blythe alleges that Gordon was, among other things, directing revenue from online web advertisements to himself personally. The matter was adjourned sine die after Gordon suffered a stroke in 2017. Following Gordon's death in April 2019, Blythe learned that the radio station is in the midst of a serious financial crisis and is in danger of losing its radio license for failing to pay required CRTC obligations. The receivership will bring stability to the situation as the station charts its way forward. Farber was appointed investigative receiver. Carlson & Kociper is counsel for the applicants.
Mundo Media, a Richmond Hill, Ontario-based advertising technology company that offers mobile marketing expertise to its customers, was placed in receivership on April 9 on application by RBC, owed approximately CAD $43.6MM and USD $25.7MM. Employing approximately 45 employees across Canada, the US and Luxembourg, the company has been experiencing declining revenue in the past year as result of, among other things, increasing scrutiny on the online advertising industry and Facebook's deletion of over 1.5 billion fake accounts, which has reduced the activity that leads to revenue generation for the company. RBC provided time for the company to find a solution to its liquidity constraints, but after months of effort, the company's best option was a letter of intent for the sale of the business which would see the bank incur a significant shortfall. EY was appointed receiver. Counsel is TGF for the applicant and Norton Rose Fulbright for the company.