The Black Press Group of Companies, CCAA

The Black Press Group of Companies, one the largest privately-owned newspaper publishers in North America, commenced concurrent proceedings under the CCAA and Chapter 15 of the US Bankruptcy Code on January 15.

Black Press, which was founded by Canadian media mogul David Black and owns over 150 news publications, has operations and publications in British Columbia, Alberta, Yukon, Nunavut and Northwest Territories in Canada, and Hawaii, Alaska and Washington in the US.

Over the past decade, the newspaper and publishing industry has been negatively affected by digital transformation and consolidation pressures. A related decline in readership and advertising revenue, debt from former acquisitions, and the lasting impacts of the COVID-19 pandemic all contributed to Black Press’s financial difficulties.

In connection with the cross-border restructuring proceedings, Black Press has entered into a support agreement and recapitalization transaction term sheet with Canso Investment Counsel, Deans Knight Capital Management and Carpenter Media Group, which will serve as stalking horse bidders in a proposed SISP. Canso has also agreed to provide Black Press with $5.5 million in DIP financing to support the restructuring proceedings and the company’s ongoing operations. 

KSV was appointed monitor.

Counsel is Cassels (Canadian counsel) and Thompson Hine (US counsel) for Black Press, Osler for monitor, and Bennett Jones (Canadian counsel) and Morrison Foerster (US counsel) for the DIP lender / stalking horse purchaser.

By: Dina Milivojevic