Court approves Postmedia bid for insolvent Atlantic newspaper chain

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HALIFAX — The Nova Scotia Supreme Court has approved Postmedia’s $1-million bid to acquire Atlantic Canada’s largest newspaper chain.

Justice John Keith ruled today that the proposal is “reasonable and fair,” clearing the way for the Toronto-based media company to buy the insolvent SaltWire Network Inc. and The Halifax Herald Ltd.

Earlier, a lawyer representing the court-appointed monitor overseeing insolvency proceedings said the main union that represents workers at the two media companies had agreed to certain conditions demanded last week by Postmedia.

Speaking outside the courtroom, lawyer George Benchetrit confirmed the union had agreed to alter some contracts and exclude some workers from the union by eliminating successor rights protected by provincial labour legislation.

Keith was told during the hearing in Halifax that the companies’ pension plan would be wound up, a move that will affect 426 people.

SaltWire and The Herald publish newspapers and online content in Nova Scotia, P.E.I. and Newfoundland and Labrador, and as of last week, the companies had 363 employees and 800 independent contractors.