By: E&P Staff A Canadian court overseeing Canwest Global Communications' bankruptcy proceedings on Friday approved the transfer of the National Post to the media giant's newspaper division in a move Canwest said avoided the threatened immediate shuttering of the daily.
Canwest Global had pleaded to be allowed to move the Post out of its purview because creditors were refusing to continue to fund the newspaper that has lost money ever since its founding 11 years ago by disgraced newspaper baron Conrad M. Black.
Canwest said late Friday the paper had been moved to its Canwest Limited Partnership division, which is not in bankruptcy. The newspaper division's creditors, who are different from the Canwest Global creditors, agreed to the shift.
Canwest Limited Partnership is likely to file for creditor protection later this year, according to widespread reports in Canada.
Parent Canwest Global is reeling under $4 billion in debt taken on largely to buy the Southam Newspaper chain when it was owned by Hollinger International, run at the time by Black.
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