On November 3, 2025, Corus Entertainment Inc. announced a proposed recapitalization transaction to reduce its outstanding third-party indebtedness and other liabilities by over $500 million, with anticipated annual cash interest savings of up to $40 million. Implemented via a plan of arrangement under the Canada Business Corporations Act, the transaction aims to improve Corus’ capital structure and liquidity. The company’s senior secured revolving credit facility has been amended and increased from $75 million to $125 million. The plan includes redeeming the existing secured term loan at par, issuing $300 million (approximately C$410 million) in new first lien senior secured notes, and settling $250 million (about C$342 million) of senior unsecured notes for second lien secured notes. Additionally, $500 million (around C$684 million) of senior unsecured notes will be exchanged for common shares of a newly formed corporation (“NewCo”), with current shareholders receiving NewCo shares representing 1% of the outstanding shares. The transaction has secured support from holders representing more than 74% of Corus’ $750 million senior unsecured notes and the Shaw Family Living Trust, which holds over 80% of the Class A Voting Shares.

Osler, Hoskin & Harcourt LLP is legal advisor to Corus, Bennett Jones LLP represents the ad hoc group of holders of Senior Notes, and Thornton Grout Finnigan LLP advises all lenders under the senior credit facility. Jefferies and KPMG LLP are financial advisors to Corus, with Canaccord Genuity Corp. advising the ad hoc group of noteholders. The transaction is subject to required approvals.