RE:Target price down to zeroCorus Entertainment's debt is likely too high for any interested buyer.
In a TD Cowen report, Vince Valentini says net debt exceeds his estimate of enterprise value and will likely be in breach of its debt covenants after March of next year and "we assume that the common equity will have very little or zero value on a potential recapitalization."
This means that current enterprise value targets might be too optimistic for the ailing media company, and Valentini says that in a distressed sale situation, a buyer such as telecom company Quebecor wouldn't be willing to pay as much as C$600 million for the company. (adriano.marchese@wsj.com)