CanWest Creditors to Choose Restructuring Officer

By: E&P Staff CanWest Global Communications Corp. plans to hire a senior executive to financially restructure the company, possibly in place of CEO Leonard Asper, according to a Globe and Mail report.

Citing filings with regulators, Globe and Mail writer Grant Robertson reports that CanWest creditors that recently supplied financing of $175 million (Canadian), may, among other things, select a restructuring officer from among candidates the company nominates. Expected to be filled this month, that position's responsibilities remains undefined.

CanWest repaid Canadian banks with the financing. Following a fall-off in advertising, CanWest for six months had been renegotiating its debt -- some C$3.9 billion for which it received extensions on payment deadlines.

The newspaper publisher and owner of the Global Television network agreed file a weekly cash flow report and explanations if it misses cash-flow targets. It also may not award executives bonuses without bondholders' and senior creditors' approval or sell an asset worth more than C$500,000.

The Globe and Mail further reports that CanWest's stake in an Australian television network was offered as collateral on loans.