Also: While hundreds are out of work, they are still allowed to have a person working under the “Local Journalism Initiative” Grant

Metroland Media is ready to make a proposal to their creditors through a Zoom meeting scheduled for November 14, 2023.

This is part of the TorStar subsidiary’s bankruptcy claim that includes, as first reported first by Muskoka Unlimited in Metroland owes $16M to employees, the $74,245,033.82 owing to creditors with $16 million of that number owed to 605 staff members they cut ties with in September.

Information is regularly updated on Grant Thornton LLP’s website, which is the firm handling the Metroland proposal to creditors under the  Bankruptcy and Insolvency Act as they ceased operating 71 community newspapers (though continue to operate online entities “in” those communities).

The proposal means that not every creditor (including many employees) will receive full compensation.

According to the proposal found on the Grant Thornton LLP website, “Secured Creditors are not affected. The claims of Secured Creditors will be addressed pursuant to the terms of the written arrangements with those parties or as otherwise agreed between the Company and the Secured Creditors.”

While different for each person, the proposal states that former employees of Metroland will receive the maximum entitlement under the Wage Earners Protection Program Act (Canada) plus approximately 13 cents on the dollar for the balance of their claims.

“This means that certain employees will receive a full recovery of their claim (employees with smaller claims) while others will receive a partial recovery,” according to the proposal document.

Other unsecured creditors (non-former employees), are set to received about 13 cents on the dollar should this proposal be accepted by both the Metroland creditors and approved by the court of law and all aspects be fully performed.

Along with the court approval process, Metroland “anticipates bringing an application before the Superior Court of Justice for WEPP to apply” to all unsecured parties that, if approved, would “increase the estimated distribution on the balance of Former Employee Claims and Unsecured Creditors from approximately 13 cents to approximately 26 cents on the dollar.”

Should this proposal be accepted, the entirety of payments for former employees and unsecured creditors should be received by the respective parties within 30 days of the approval.

In the proposal, it basically notes that this application to the court will only occur if this proposal is accepted at the first meeting of creditors (on November 14). It’s a little bit of carrot-dangling.

Then comes the part that, when read a certain way, could be construed as a sort of threat but not really but yeah really a threat . . . basically an “or else statement” that reads:

“Keep in mind that in the event of bankruptcy, the Affiliates would be entitled to their proportionate share of any recoveries and Canadian Imperial Bank of Commerce (“CIBC”), the sole Secured Creditor, would be entitled to recovery on a priority basis. The Proposal Trustee has determined that in the event of a bankruptcy, Unsecured Creditors will recover approximately 5 cents on the dollar in the best-case scenario, with no potential upside to creditors arising from the success, if achieved, on the WEPP Application. However, if the Proposal is accepted by the Required Majority of creditors and approved by the Court, neither the Unsecured Claims held by the Affiliates or the Secured Claims held by CIBC would be voted, filed or participate in the distribution under the Proposal.”

In layman’s terms, you’ll be losing a lot more money to reject this proposal and force us to file for bankruptcy as then “our hands are tied” by the law that gives un-due weighted priority to secured creditors such as banks and big business rather than the working stiffs who made the company run in the first place.

NOT-SO-LOCAL JOURNALISM FUNDING

Nothing personal to the nice young man doing the job for Metroland’s Muskoka entities, but the federal government’s Local Journalism Initiative shouldn’t be granted to companies that claim bankruptcy and owe former staff millions of dollars in wages.

There were other truly local companies that applied for the same – or similar grants – for a young journalism student/graduate who were denied their applications.

Yet, a giant conglomerate got approved and didn’t even hire a local person to fill the role. This entity that has now claimed bankruptcy and owes millions of dollars to a lot of good, hardworking people (many of whom have been or continue to be volunteers in their respective communities).

The whole situation is a sham and is a disgrace. Our tax dollars should not be funding anything that Metroland, TorStar or their subsidaries do. The second that Metroland claimed bankruptcy and laid off all those wonderful people (well, at the least the ones I know are wonderful), they should have had their grant funding for the local journalism initiative pulled.

The grant should be given to companies that will hire young aspiring media members people who are from or live in the respective “local” areas that grant is targeting.

I know a ton of young aspiring media members who would have loved the opportunity to get his kind of experience. These young people are from this area and the beneficiary of this grant is not.

Again, this is a not a personal attack about the person Metroland chose as I think he is a good person who is trying hard, but he’s not from here, and wasn’t even living in or near the area when he was chosen to fill this federally funded position.

This isn’t about being against the individual, it’s about being against the system that isn’t supporting those it claims to be wanting to help. Unfortunately, there is nothing in the rules that states the companies approved for these funds are required to find someone from – or at least from nearby – the community the person is supposed to be working in.

If the federal government really wanted to support local media, they would be finding ways to ensure young aspiring media members from those respective communities benefit from their funding.

They would also be approving applications from truly local media outlets to get grants and funding to hire young people in their respective fields, whether it’s online, print, radio or television news.

I have seen a lot of questions from newcomers our communities about where to find good local news done by local entities and I’ve seen the Metroland outlets posted in response. That is relatively false.

There is barely anything local about those outlets anymore and what were once grand, respected sources of quality community reporting are nothing more than hollow shells smeared with corporate smudge and self-importance.

Do you really want to support local media entities and personalities (in addition to Muskoka Unlimited)? Check out my friends at The Bay 88.7 FM, YourTV Muskoka, or at the Doppler.

As I know that individuals at each of these outlets support what I do (or at least some of what I do), and I support what they do, I’m happy to spread the love and encourage that you follow all of us.

At least then you’ll know you are supporting people who care about this community (and, in the case of three of the outlets, are owned by long-standing and active community members) and not a giant corporation who can’t be bothered to give full compensation to its former employees.