MONTREAL – Two potential buyers signalled enough interest in financially strapped Quebec television network TQS this week to convince a Quebec Superior Court judge to give the network another 45 days of court protection from creditors.
Judge Pierre Journet said the receipt of two letters of intention from the two unnamed suitors was an indication that TQS’s financial situation has not worsened to the detriment of creditors, and that a further delay constitutes a “reasonable and credible” condition to finding a long-term solution.
TQS was granted 30 days’ protection in December. The new delay gives controller RSM Richter until February 29 to seek firm offers to save Quebec’s third-ranked network from bankruptcy.
As Cartt.ca has reported, TQS has been swimming in troubled waters for several years because of a combination of factors, including the rise of speciality channels and a splintering of available advertising dollars in the Quebec market. It was also bitterly disappointed with the CRTC’s rejection last May of the idea of carriage fees to help traditional broadcasters compete with fee-supported speciality channels.
Making matters worse was the decision by Radio-Canada to end its affiliation agreements with TQS in three cities as of 2009, which would add an estimated $5 million to its costs. Quebec culture minister Christine St-Pierre went as far as to lay blame at the feet of Radio-Canada.
Some reports indicate the two most interested parties are Rogers Media (OMNI Quebec, anyone?) and RNC Média (Radio Nord Communications). It’s also been reported that a third potential buyer may come forward in the coming days.
TQS is 60% owned by Cogeco and 40% by CTVglobemedia.
Glenn Wanamaker is Cartt.ca’s Quebec Editor and is based in Quebec City.
