SaltWire Network files for creditor protection, has $94M in debt

SaltWire Network files for creditor protection, has $94M in debt

A company that owns nearly two dozens newspapers in Atlantic Canada has debts of almost $100 million and is filing for creditor protection.

SaltWire Network made the application in the Supreme Court of Nova Scotia, according to court documents filed on Monday.

The court documents said SaltWire has more than $94 million in debt, with roughly a third of that owing to its lender, Fiera Private Debt Fund.

Fiera’s lawyers filed an application in court on Monday saying SaltWire doesn’t have the assets to pay back the money it owes.

“The applicants have lost faith in the Companies’ management team and management has displayed a repeated failure to properly manage the Companies’ businesses,” said the filing by Norton Rose Fulbright Canada LLP, which is representing Fiera.

Other legal woes

Last week, SaltWire was ordered to pay $500,000 as a security bond in connection to a separate legal matter involving the company Transcontinental. That matter relates to the 2017 purchase by SaltWire of more than two-dozen Transcontinental newspapers.

SaltWire was also recently ordered to pay $70,000 for failing to stay up to date with pension plan payments.

What SaltWire is saying

In a statement, the company said filing for creditor protection will help ensure the company’s long-term sustainability.

“SaltWire Network is confident that the … process will enable us to emerge as a stronger, more vibrant media company,” said chief operating officer Ian Scott. 

“We are dedicated to continuing our legacy of providing insightful, local journalism and contributing positively to the communities we serve.”

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