FAQs & Cautionary Statement
To the extent any statements or information made on this site, or any of the documents referenced on this site, contain information that is not historical, these statements and the information are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking information”). This forward-looking information relates to, among other things, the objectives, goals, strategies, targets, intentions, plans, estimates, and outlooks of Corus Entertainment Inc. and its subsidiaries (collectively, “Corus” or the “Company”), including, but not limited to, its: strategic, operational and business plans; anticipated revenue, cost, and subscription trends; applicable regulatory, judicial, and legislative changes, decisions, and regimes; expectations regarding financial and operational performance; expectations regarding costs, tariffs, taxes, and fees; capital, balance sheet management, and liability management plans, strategies, and actions and benefits thereof; ability to repay debt and/or maintain necessary access to loan and credit facilities; and the Company’s previously-announced proposed recapitalization transaction (the “Recapitalization Transaction”) and the approval and completion thereof.
Forward-looking information can generally be identified by use of words such as “estimate”, “forecast”, “project”, “believe”, “anticipate”, “expect”, “intend”, “plan”, “will”, “may”, or the negatives of these terms and other similar expressions. In addition, any statements that refer to expectations, anticipated outcomes or impacts, projections, or other characterizations of future events or circumstances may be considered forward-looking information.
Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves many material assumptions, risks, and uncertainties and undue reliance should not be placed on such statements. Certain material factors and assumptions, which are subject to uncertainty, risk, and change and may cause actual results to differ materially from expectations, calculations, plans, and forecasts, are applied with respect to forward-looking information. Such factors and assumptions include, without limitation, those relating to or impacting: the sustainability of Corus’ current and proposed capital and debt structure; Corus’ ability to maintain access to, renegotiate, obtain relief from, and meet covenants under relevant secured and unsecured credit facilities and instruments; Corus’ ability to access sufficient capital and liquidity; macroeconomic, geopolitical, and general business and market conditions; Corus’ ability to execute its strategies and plans; Corus’ financial and operating results being consistent with expectations; Corus’ ability to attract, retain, and manage fluctuations in revenue; continuity of relationships and arrangements with, and revenue and costs attributed to, suppliers, distributors, partners, clients, and customers on desirable and expected terms; stability of advertising, subscription, production, and distribution markets and revenue; changes to key suppliers and clients; impacts of pending and threatened litigation, regulatory and judicial decisions and interpretations, and appeals thereof; changes in laws and regulations and the interpretation and application thereof, including statements, decisions, and positions by applicable courts and regulators, including, without limitation, the Canadian Radio-television and Telecommunications Commission; changes to licensing status and conditions; impacts of competition from foreign and domestic competitors, including due to industry mergers and acquisitions and such competitors not being regulated in the same way or to the same degree; strategic opportunities and partnerships (or lack thereof) that may be presented to, pursued, or implemented by the Company; changes to applicable accounting standards and tax, licensing, and regulatory regimes; changes to operating and capital costs and imposed and threatened tariffs, taxes, and fees; impacts of interest rates and inflation; Corus’ ability to source, produce, and sell desirable content; unanticipated and un-mitigatable changes to programming costs; retention and reputation risks related to employees and contractors; physical and operational changes to facilities and infrastructure; industry and Company-related labour actions; cybersecurity threats and incidents to Corus or its key suppliers and vendors; and epidemics, pandemics, and other public health and safety crises. These factors also include factors and assumptions relating to, or impacting, the execution of the Company’s proposed Recapitalization Transaction, including, without limitation: approval of the Recapitalization Transaction, including by applicable regulatory authorities and stock exchanges; ability to complete, execute, and implement the Recapitalization Transaction in the time and manner contemplated; anticipated and expected effects and impacts of the Recapitalization Transaction on the Company and/or its stakeholders; obligations and abilities of third parties to close or complete actions as part of the Recapitalization Transaction; anticipated reduction of the Company’s debt and related costs and interest expenses (including the amounts thereof); exchange of existing equity and debt for new equity and debt; and dilution or changes to the Company’s outstanding shares in number or value and markets for them. Actual results may differ materially from those expressed or implied in such information and the foregoing list is not exhaustive.
Additional information about these factors and the material assumptions underlying any forward-looking information may be found under the heading “Risks and Uncertainties” in the Company’s Management’s Discussion and Analysis (“MD&A”) for the year ended August 31, 2025, as may be updated, supplemented, or amended from time to time, including by quarterly MD&A, press releases, or other subsequent disclosure, any and all of which will be made available on SEDAR+ at www.sedarplus.ca. The Company cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive.
When relying on the Company’s forward-looking information to make decisions with respect to Corus or the Recapitalization Transaction, investors and others should carefully consider the foregoing information, including as incorporated by reference, and any other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document and may be updated or amended from time to time. Except as otherwise required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events, or circumstances that may be made or arise from time to time.
A “Plan of Arrangement” is a court-supervised process that will allow Corus to complete our Recapitalization Transaction and make changes to our share and debt structure in accordance with the order received by the Ontario Superior Court of Justice (Commercial List) (referred to in this document as the “Court”) on March 24, 2026, and the receipt of any and all necessary regulatory and stock exchange approvals.
Corus has entered into support agreements with noteholders representing more than 74% of its senior unsecured notes, its existing senior lenders, and its largest holder of the Class A voting shares. Copies of these support agreements and related term sheets have been filed and made available on SEDAR+ here.
In recent weeks, the Company has taken steps to progress the Plan of Arrangement, including by calling, holding and conducting special meetings (referred to as “Special Meetings”) of existing holders of our $750 million aggregate of senior unsecured notes (the “Senior Noteholders”), and of our Class A Voting Shareholders and Class B Non-Voting Shareholders as at December 24, 2025 (together–“existing securityholders”) to consider and vote on the plan of arrangement. The terms of the settled plan of arrangement were described in a Management Information Circular dated January 2, 2026 (“Circular”) that was provided to all existing securityholders before the Special Meetings, and made available on SEDAR+ here and Corus’ website here. At the Special Meetings on January 30, 2026, voting was completed by the holders of the Company’s Class A Voting Shares and Class B Non-Voting Shares and the holders of the Company’s outstanding unsecured senior notes in the aggregate principal amount of $750 million. Based on the voting results, the requisite number of votes cast to pass the resolution was obtained by each of the Senior Noteholders and the Class A Shareholders but not by the Class B Non-Voting Shareholders (who were entitled to vote in this circumstance). As disclosed in the Circular, Corus is permitted (by an Interim Order of the Court made on December 17, 2025) to seek approval of the plan of arrangement even if shareholders do not pass the resolution at the Special Meetings
On March 24, 2026, Corus announced that it has sought and received an order from the Ontario Superior Court of Justice (Commercial List) to proceed with the Arrangement under the Canada Business Corporations Act.
The Recapitalization Transaction remains subject to, among other things, satisfaction of the terms and conditions in the support agreements with key stakeholders and the receipt of all customary and necessary regulatory and stock exchange approvals.
Corus is working expeditiously to obtain all necessary regulatory approvals and complete the Recapitalization Transaction as soon as reasonably practicable. We will provide updates as to timing of completion when further information regarding timing of regulatory approvals is known.
Corus is working as quickly as possible to secure all necessary approvals. While Corus has stressed the importance of and benefits to the Company and its stakeholders of an expedient closing, we do not have any estimated completion dates at this time.
It’s important to note that Corus continues to operate business as usual, with no disruption to day-to-day operations.
Results from the Special Meetings are available on SEDAR+ here.
When completed, the proposed Recapitalization Transaction will support our long-term business strategy and operations by giving us a stronger financial foundation and more financial flexibility. Throughout this process, we continue to operate our business as usual, with no anticipated impact on our obligations to clients, producers, suppliers or employees as a result of the Canada Business Corporations Act or “CBCA” proceedings.
Management and the Corus Board made this decision after conducting a thorough, strategic review process to explore and evaluate all potential transaction alternatives, including financing options and transaction opportunities. The goal of the review process was to find a longer-term solution to optimize our debt and share structure, create more financial flexibility, and preserve value.
The review was led by a sub-committee of the board of directors, made up entirely of independent directors. The board of directors also engaged external financial and legal advisors to assist with this process.
After completing the review process and evaluating all available options and, following the earlier announced assignment of our credit facility to our existing Senior Noteholders, the Board concluded that the proposed Recapitalization Transaction is the best viable option available for Corus and our stakeholders at this time.
With the proposed Recapitalization Transaction, Corus is seeking to materially reduce our debt. If approved, once the transaction closes, we expect to reduce our total third-party debt and other liabilities by more than $500 million, reduce annual cash interest by up to $40 million and extend maturity dates within the new debt structure to at least five years.
In general terms, it is business as usual.
Contracts and obligations with or to producers, suppliers, distributors, clients, customers, and employees, are not being “arranged” as part of the proposed Recapitalization Transaction. As such, we do not anticipate any impacts to these relationships as a result of the Canada Business Corporations Act or “CBCA” proceedings Corus is following to conduct the proposed Recapitalization Transaction.
In fact, we are excited about continuing to acquire, produce and deliver the amazing content that Canadians know and love across our platforms, and building on our important relationships with clients, suppliers and partners for the future.
No. The proposed Recapitalization Transaction is being conducted under the Canada Business Corporations Act or “CBCA”, a corporate statute. The CBCA process provides an avenue for the Company to create a more sustainable capital structure with a lower level of debt with the support of our key stakeholders, all while enabling us to continue our relationships with, and obligations to, suppliers, partners, customers, employees and clients.
Without the Recapitalization Transaction, or in the event it is not completed on the terms and timeline currently contemplated, the Company will need to pursue alternative restructuring strategies, possibly under the Companies’ Creditors Arrangement Act (the “CCAA”).
If approved and after closing of the proposed Recapitalization Transaction, the board of directors of the new holding company of Corus (“NewCo”) will comprise five directors (which individuals are to be confirmed) and the current directors of Corus will resign. All changes resulting from the proposed transaction are outlined in the Circular that was delivered to affected securityholders in connection with the required Special Meetings.
Yes. Corus continues to have access to a secured credit facility that gives us access to an increased “revolving” facility (increased to $125 million from $75 million on October 29, 2025) and also includes an approximately $301 million secured term loan.
If approved and at closing of the proposed Recapitalization Transaction, Corus’ existing secured revolving credit facility will essentially continue (technically, it will be amended and restated into a new, $125 million secured revolving credit facility). The existing secured term loan will be settled and exchanged for new senior secured notes in the aggregate principal amount of $300 million.
Corus has entered into a waiver and standstill agreement (the “Agreement”) with the Lenders under the Company’s Eighth Amended and Restated Credit Agreement (the “Credit Facility”) following the expiry on February 28, 2026 of the prior agreement dated March 21, 2025 which amended certain terms of the Credit Facility. The Agreement, which is publicly available on SEDAR+, enables the Company’s continued access to liquidity by providing waivers of certain financial covenants, such as those relating to leverage and interest coverage ratios, subject to certain terms and conditions. The Agreement term is until May 30, 2026. We will evaluate any necessary waivers, approvals or other actions as needs arise.
Yes. As described above, the plan of arrangement contemplates that NewCo will be a public company after the proposed Recapitalization Transaction closes.
No, the proposed Recapitalization Transaction will not impact viewers or listeners.
It is expected to be business as usual.
