Postmedia has entered into an agreement to acquire businesses and assets of Saltwire Network, Atlantic Canada’s largest media company.

With the potential acquisition, readers will continue to have access to features on national and international news by local Saltwire journalists. The acquisition, which is subject to a number of conditions, including satisfactory outcomes with unions and other stakeholders, is expected to close on August 26.

The announcement comes after Saltwire filed for protection under the Companies’ Creditors Arrangement Act (CCAA) following years of financial difficulties. The CCAA is a federal law that allows insolvent companies that owe creditors more than $5 million to restructure their business and financial affairs. It enables a company to continue in business while it attempts to develop and obtain approval of compromises or settlements with its creditors.

Postmedia president and chief executive officer Andrew MacLeod said that the acquisition aims to preserve local journalism and support the communities it serves. MacLeod said local journalism is critical to keeping communities informed and engaged, and Saltwire, with over a dozen media outlets, plays an important role in that regard.

Saltwire owns daily newspapers in Nova Scotia, Prince Edward Island and Newfoundland, including the Cape Breton Post, the Guardian and the Telegram, as well as weekly papers and several digital publications.

“We urge all stakeholders, including employees and community leaders, to support our efforts. The future of local journalism in the Atlantic provinces depends on everyone’s cooperation in a successful restructuring,” MacLeod added.

Postmedia has taken several initiatives to preserve local journalism in the wake of recent staff cuts and lack of advertisers. In April, it launched a new content app that, according to the company, offers subscribers a more integrated, optimized and personalized experience. The application precedes another one that was already obsolete and was originally developed by a third party.

In its fiscal third quarter, released last week, Postmedia showed that its total revenue for the three months ended on May 31 was $100.8 million, compared to $111.2 million in the same period in the prior year, representing a decrease of 9.3%. The decrease was primarily due to a $6.5 million (12.0%) decline in advertising revenue and $3.4 million (9.4%) in circulation revenue.