The Ontario Superior Court has approved Corus Entertainment’s request to proceed with a previously announced recapitalization.

The deal had originally gone to a shareholder vote in January but after narrowly falling short of full shareholder approval, Corus sought court approval to move ahead with its plan as it was permitted to do.

“As we have said, we believe the proposed recapitalization transaction represents the best path for Corus and I’m very pleased with today’s decision,” John Gossling, Corus’ chief executive officer, said in a statement.

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“This is a positive step forward as we work towards closing the transaction expediently to position the company for the future.

While 99 per cent of Senior Noteholders and Class A shareholders voted in favour of the recapitalization plan in January, only 29.8 per cent of Class B shareholders voted. Of those, 61.2 per cent voted in favour of the deal, falling short of the two-thirds required.

Corus Entertainment, the parent company of Global News, had reached the proposed deal with its secured lenders in November 2025 as an attempt to restructure the company’s $1.1 billion of debt.

At the time, Gossling said the deal would “solidify our financial foundation and position Corus for the long-term.”

The deal includes a reduction of total debt and liabilities by more than $500 million and a slashing of annual cash interest by up to $40 million as well as extending debt maturity by five years.

The recapitalization plan followed a period of declining advertising revenue, heightened competition from streaming services, and a challenging regulatory environment as well as a series of cost-cutting measures by the media company.

The deal is subject to CRTC approval.

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