Bid to sell insolvent newspaper chain in Atlantic Canada reaches critical phase [Video]

The private lending firm that pushed Atlantic Canada’s largest newspaper chain into insolvency in March says negotiations aimed at selling SaltWire Network Inc. and The Halifax Herald Ltd. have reached a crucial phase.

Jennifer Stam, a lawyer for the Toronto-based Fiera Private Debt Fund, made the statement Friday in Nova Scotia Supreme Court, where Justice John Keith later approved a motion to extend the media companies’ protection from creditors until Aug. 8.

“The parties are at a critical time in the negotiations,” Stam told the court, adding that Fiera did not oppose the extension or other measures intended to keep the companies operating.

Last week, the court-appointed monitor overseeing the potential sale of the deeply indebted companies confirmed the selection of an unnamed bidder who has plans to operate the companies as viable businesses. At the time, Toronto-based KSV Restructuring Inc. said negotiations with the bidder were advancing toward a …