The Ontario Superior Court has approved Postmedia's proposal to restructure its $648-million debt.
Under the plan, Postmedia will exchange roughly $345 million of debt owed to its second lien debt holders into shares that will amount to a 98 per cent stake in the company, leaving current shareholders with the remaining two per cent.
The company will also issue about $110 million worth of new second lien notes that mature in July 2023 and repay $78 million of its first lien debt.
Postmedia (TSX:PNC.B, TSX:PNC.A) will receive an extension until July 2021 to repay the outstanding $225 million.
Last week, the media conglomerate's first- and second-lien debt holders, and shareholders approved the plan.
Postmedia expects to complete the transaction around the end of the month, once it either satisfies or waives the remaining conditions.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.