Corus Entertainment will still pursue court approval for its proposed recapitalization transaction, despite a vote by Class B shareholders falling short of the required numbers.

The arrangement is poised to save the beleaguered media company up to $40 million in annual cash interest payments and shave its third-party debt and other liabilities by over $500 million.

Voting earlier this week saw strong overall support for the arrangement, with 99.9% of votes cast by Senior Noteholders (in the principal amount of $750M) in favour, alongside 99.7% of Class A shareholders. Class B shareholders voted just 61.2% in favour. At least two-thirds (66⅔%) of the votes cast by the holders of Class B Non-Voting Shares was required to pass the resolution.

“We continue to strongly believe that the Recapitalization Transaction is fair and reasonable and in the best interests of Corus and its stakeholders.  It represents the best viable option to secure Corus’ future while preserving the most shareholder value”, said Mark Hollinger, Independent Lead Director of the Board. “In other restructuring scenarios, it is unlikely that shareholders will recover any amounts.”

Corus will seek court approval for the transaction at a hearing scheduled for March 12.

Shares of Corus Entertainment were trading at .035 on the TSX as of Friday afternoon.