🇨🇦New Chapter 15 Bankruptcy Filing - Frontier Media LLC🇨🇦
Canadian media companies with US assets files in Canada and US.
On May 13, 2025, Frontier Media LLC, Local First Media Group, Inc., and five affiliates (collectively, the “debtors”) filed chapter 15 cases in the Eastern District of Texas (Judge Rhoades). The debtors are “Canadian companies with U.S. affiliates operating radio stations in the United States” and are currently in receivership under Canada’s Bankruptcy and Insolvency Act before the Court of King’s Bench of Alberta (the “Alberta court”).
And sacré bleu!, FTI Consulting Canada Inc. (Deryck Helkaa) (“Canuck FTI”), a sub of FTI Consulting, Inc. ($FCN), is the Alberta court-appointed receiver!
The debtors found their way to Canuck insolvency court by way of “major secured creditor” ATB Financial (“ATB”), which lent them ~$8.2mm or, given current exchange rates, 11.5mm loonies, under an April ‘23 loan agreement.* But a short six months later, in November ‘23, the debtors had already overspent at Timmies and were in default, so the parties executed forbearance docs that brought on FTI CA to serve as the debtors’ babysitter “monitor.”
By August ‘24, the debtors had defaulted the forbearance too, and ATB demanded payment, which didn’t come. So, having had enough, on February 10, 2025, ATB filed an application to appoint a receiver with the Alberta court, which it granted on February 21, 2025. Under the order, Canuck FTI pivoted from classroom monitor to empowered receiver and intends to “effectuate a sale of the Debtors’ assets without jeopardizing the rights of any of the Debtors’ creditors.”
Which brings us to US bankruptcy court because, like a lot of Canuck cos., the debtors have a decent chunk of their assets south of the 49th parallel — real estate in Texas,** contract rights in New York, and ~63 FCC licenses, one of which is for an “earth station.”
As of writing, a hearing on the petition for recognition hasn’t yet been scheduled, but we’re not expecting any fireworks from these cases. The debtors appear to be properly at home in Alberta court and aren’t requesting any “provisional” (read: interim) US relief. But on the off-chance you’re looking to break into the radio business, give ‘em a holler.
The receiver is represented by Norton Rose Fulbright US LLP (Kristian Gluck, Michael Berthiaume, Steve Peirce) as US legal counsel and Norton Rose Fulbright Canada LLP (Howard Gorman K.C.) as Canadian legal counsel.
*Beyond ATB, the debtors owe 7032749 Canada Inc. $2.5mm CAD and $405k USD and Ontario resident Noel Webb $182.6k CAD.
**There’s also some north-of-the-parallel real estate in Alaska.
Receiver Professionals:
Receiver: FTI Consulting Canada Inc. (Deryck Helkaa)
US Legal: Norton Rose Fulbright US LLP (Kristian Gluck, Michael Berthiaume, Steve Peirce)
Canadian Legal: Norton Rose Fulbright Canada LLP (Howard Gorman K.C.)
Claims Agent: Stretto (Click here for free docket access)