A company that owns nearly two dozen newspapers in Atlantic Canada has debts of almost $100 million and is filing for creditor protection. SaltWire Network, the company in question, made the application in the Supreme Court of Nova Scotia, according to court documents filed on Monday.
The court documents reveal that SaltWire has more than $94 million in debt, with roughly a third of that owing to its lender, Fiera Private Debt. Additionally, SaltWire owes more than $7 million in unpaid HST to the Canada Revenue Agency, while the Chronicle Herald owes $2.6 million for missed pension plan payments.
Fiera’s lawyers filed an application in court on Monday, stating that SaltWire does not have the assets to pay back the money it owes. The court documents also highlight that SaltWire has only made one-third of its debt payments over the last five years. Fiera gave SaltWire until the end of January to send a letter of intent illustrating how the debt will be repaid, but did not receive a response from the company.
Legal troubles continue to mount for SaltWire, as last week they were ordered to pay $500,000 as a security bond in connection to a separate legal matter related to the 2017 purchase of more than two-dozen Transcontinental newspapers. They were also recently ordered to pay $70,000 for failing to stay up to date with pension plan payments.
In a statement, SaltWire expressed confidence that filing for creditor protection will help ensure the company’s long-term sustainability. Chief Operating Officer Ian Scott stated, “SaltWire Network is confident that the process will enable us to emerge as a stronger, more vibrant media company. We are dedicated to continuing our legacy of providing insightful, local journalism and contributing positively to the communities we serve.”
The company attributes its financial struggles to the “unprecedented challenges” faced by Canadian media in recent years, as well as the negative impact of multinational social media networks.
Willy Palov, president of the Halifax Typographical Union, expressed optimism despite the challenges, stating that the financial struggles faced by SaltWire are outside of the union’s sphere of influence. He acknowledged the company’s acquisition of properties from Transcontinental and the accompanying pension and tax debts as contributing factors to their current situation.
Overall, SaltWire’s filing for creditor protection signals a tumultuous time for the company, as they navigate financial struggles and legal woes in an ever-evolving media landscape.
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