Quebec broadcaster TQS in creditor protection
Last Updated: Tuesday, December 18, 2007 | 4:18 PM ET
CBC News
Quebec-based television broadcaster TQS Inc. obtained court-ordered protection from its creditors on Tuesday while it revamps its operations.
The network employs about 600 people. It includes stations in Montreal, Quebec City, Saguenay, Sherbrooke, Trois-Rivières, and affiliates in Gatineau-Ottawa, Val-d'Or-Rouyn-Noranda, Rimouski and Riviere-du-Loup.
The company, which has been trying since October to find a fix for its financial troubles, is a victim of "circumstances beyond its control" in the Quebec television market, said Louis Audet, president and CEO of co-owner Cogeco Inc. and chairman of the TQS board of directors.
TQS said those factors include:
- Lost advertising revenue to specialty TV networks and content accessible via the internet.
- Increased production costs.
- CRTC refusal to let general television networks charge subscriber fees for signal distribution.
- Programming competition from publicly-owned broadcaster Société Radio-Canada.
- SRC's plans to end its broadcast affiliation with TQS in Saguenay, Sherbrooke and Trois-Rivières in August 2008.
Cogeco Inc. owns 60 per cent of TQS and CTVglobemedia owns the rest.
In late October, TQS announced plans to cut 40 jobs, and hired CIBC World Markets to do a strategic review of the network.
The company said Tuesday that after reviewing the CIBC World Markets' report and considering its options, the board of directors decided to file for creditor protection while it restructures.
Shares of Cogeco gained $1.47 to finish at $37.47 on the TSX.
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