WINNIPEG – Friday could prove to be an interesting day at Canwest Global Communications.
Subsidiary Canwest Media Inc. (CMI) is up against its most recent deadline with the members of an ad hoc committee, holders of 8% senior subordinated notes of CMI, contemplating a recapitalization transaction.
As Cartt.ca readers already know Canwest has been in discussions for some time with various parties, including the members of the ad hoc committee. A decision could involve a cash investment and/or a conversion of certain of its existing debt to equity, in order to reduce the debt of Canwest Media. Or, the deadline could just be extended again.
Sokesperson John Douglas told Cartt.ca late on Thursday that the numerous extensions are, in fact, "symptomatic that the process is moving forward” and assured that “progress is being made”.
In other news, the company is waiting on the voting results from the union at Hamilton’s CHCH TV, recently sold to independent specialty service operator Channel Zero.
The union is voting on a one year contract, and the deletion of language related to the pension plan, both conditions of its sale to Channel Zero. Voting began on Thursday and will continue over a 24 hour period before being tabulated.
“We are quite confident that it will succeed”, Douglas said.
CHCH’s union is not required to vote on or approve Canwest’s wind up of the retirees pension plan, as this decision was made at the corporate level and announced in June as part of the Channel Zero sale.
“That plan is specific to one station, and to one station only”, Douglas said. “Given that we won’t be moving forward, won’t own it, and there will not be any new members added to it, this was a decision made in conjunction with the sale.”
Douglas said that actuaries will evaluate the plan at the end of August, and all current plan members will then receive their entitlements. He confirmed that regular payments to the plan members will continue through that time.
– Lesley Hunter
