CanWest gets another extension

Rose Major


CanWest’s recapitalisation discussions with its senior noteholders continue. With clockwork-like regularity, the company said on Friday (August 14) that it was again extending talks with members of an ad-hoc noteholders’ committee.

A statement from the Canadian media company said: “The holders of the 12% senior secured notes of CMI and Canwest Television Limited Partnership as well as CIT Business Credit Canada Inc., the provider of a senior secured revolving asset-based loan facility to CMI, have agreed to extend to August 28, 2009 certain milestones that were to be have been achieved by August 14, 2009. The date by which CMI must enter into an agreement in respect of a recapitalization transaction has been extended to August 28, 2009.”

CanWest is in debt to the tune of some C$4 billion and while only a small fraction of that debt is now due, its assets have been losing value and the company revenues as the recession continues to bite. Sales of some assets – local TV stations in Hamilton and Montreal – have so far failed to solve the issues.

Assets still owned include a controllling stake in Australia's Ten Network, as well as some 18 speciality channels.