Canadian media company Black Press and certain of its subsidiaries obtained an initial order on Jan. 15 under the Companies’ Creditors Arrangement Act from the Supreme Court of British Columbia in Vancouver.

The initial order provides for, among other things, a stay of proceedings in favor of the company, the approval of debtor-in-possession financing to be provided by Canso Investment Counsel and the appointment of KSV Restructuring as monitor of the company. The initial order also extends the stay of proceedings to certain subsidiaries of the company that are not petitioners in the CCAA proceedings.

In connection with the CCAA proceedings, the company entered into a support agreement and transaction term sheet with Canso, Deans Knight Capital Management and Carpenter Media Group (together, the “purchasers”) that contemplates a sale of the company’s business to the purchasers. The company intends to seek court approval to launch a sale and investment solicitation process (SISP) for its business and assets on or around Jan. 25. If approved by the court, the transaction with the purchasers will serve as the stalking horse bid in the SISP.

Among other things, the transaction with the purchasers will address the company’s obligations to its secured creditors and will include an injection of capital that will enable Black Press to continue serving readers, advertisers and other stakeholders. It also brings additional expertise in the management of local media, as well as the continued support of Deans Knight and Canso. Under the terms of the transaction, the company would continue to be Canadian-controlled.

Black Press also intends to seek recognition of the CCAA proceedings in the U.S. pursuant to Chapter 15 of Title 11 of the U.S. Code in the U.S. Bankruptcy Court for the District of Delaware.