Meet the Canadian Whose Claim to Postmedia Trumps GoldenTree's
- Former navigator who wrote for campus paper builds position
- Postmedia newspaper default risk rising, rating firms say
Majority ownership of Canada’s largest newspaper chain could fall into the hands of a little-known Canadian investment firm from those of a U.S. hedge fund as concern mounts that Postmedia Network Canada Corp. may default on more than half a billion dollars in debt.
Canso Investment Counsel Ltd., founded by a former air-force navigator who’s dabbled in journalism himself, has built a controlling position in about C$300 million ($217 million) of Postmedia bonds that have first claim to the assets in the event of restructuring, a 2014 statement from the publisher shows. The chances of a default have increased after credit-rating firms downgraded Postmedia’s almost C$700 million in debt, questioning its ability to repay the notes when they come due in 2017 and 2018.