By Adriano Marchese

Corus Entertainment agreed to give control of the company to bondholders in a financial restructuring move that had the blessing of the Shaw family, its biggest shareholder.

The stock traded 11% lower at 9 Canadian cents a share, the equivalent of 6 U.S. cents, just pennies on the dollar from the highs of the last few years.

The media company said Monday that it is undergoing a major financial restructuring to avoid collapse, agreeing to give 99% of the ownership of the company to its bondholders in exchange for removing more than C$500 million of debt from its balance sheet. The restructuring is the best option available to save the company, the board said.

Corus has been struggling for years as its traditional broadcasting business, which includes the Global Television Network and specialty channels like Showcase and Food Network Canada, is hampered by declining ad dollars and intense competition from digital platforms like Netflix and Prime Video. To make matters worse, the company has been operating under a heavy debt load, taking away most of its flexibility to navigate in a changing landscape.

As part restructuring the Shaw family's 80%-plus voting stake in Corus will be reduced to almost nothing. The founding and controlling shareholders, which includes the Shaw family, will be left with just 1% stake in the new entity.

Corus said that under its new corporate structure, it will see annual cash interest savings of up to C$40 million. Also as part of the arrangement, Corus will continue to have access to its revolving credit facility, which has been increased to C$125 million from C$75 million, to support the company's continued operations.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 03, 2025 11:38 ET (16:38 GMT)

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