By: Etan Vlessing
Canwest Global Communications’ newspaper division has been given
more time by its creditors to restructure its operations and repay debt.
The broadcaster said its subsidiary, CanWest Ltd. Partnership, which is in
default after it missed interest payments on senior secured credit
facilities, is in discussions with senior lenders on extending a forbearance
agreement that expired Nov. 9.
CanWest LP, which includes a string of national and community newspapers and online assets, is not part of a separate court-directed restructuring by Canwest Global unveiled on Oct. 6.
The Ontario Superior Court earlier approved the transfer of the National
Post from parent Canwest Global to CanWest LP to save the national newspaper from closure.
Canwest Global is expected to seek a buyer for its publishing assets, the
National Post included, in a bid to restructure a $4 billion debt load and
emerge from creditor protection by January.
— Nielsen Business Media