11:38 AM EST, 11/03/2025 (MT Newswires) -- Corus Entertainment (CJR-B.TO) Monday announced a proposed recapitalization transaction to reduce its debt, lower annual interest costs and improve its capital structure and liquidity.

The recapitalization, which will be implemented through a plan of arrangement, will see half a billion dollars of third-party indebtedness and other liabilities cut from Corus' balance sheet as senior lenders take shares in NewCo, while delivering interest savings of up to $40 million. Corus' revolving facility has been amended and increased to $125 million, from $75 million to support ongoing operations and liquidity.

All of Corus' Class A and Class B shares will be exchanged on a 1:1 basis for NewCo shares that are expected to represent, in aggregate, 1% of all of the shares of NewCo on a non-diluted basis the company said. The shares will trade publicly.

The company says it has received the support of its lenders under the senior credit facility and of noteholders representing three-quarters of Corus' $750 million of senior unsecured notes. Its board of directors will also be refreshed at closing and comprise, initially, five directors.

Corus shares were last seen down $0.01 to a 52-week low of $0.085 on the Toronto Stock Exchange.

Price: 0.09, Change: -0.01, Percent Change: -10.53