WINNIPEG – Canwest has obtained creditor protection for some of its assets, including Global Television and the National Post.
The news follows an earlier announcement on Tuesday in which Canwest Global Communications Corp. announced that it had reached an agreement with the ad hoc committee of 8% senior subordinated noteholders over a restructuring plan.
The company has also secured debtor-in-possession financing of up to $100 million, which, when combined with the proceeds of the sale of its interests in the Australian TEN Network Holdings will “provide sufficient liquidity to meet ongoing obligations and ensure that normal operations continue without interruption while the recapitalization transaction is implemented”, the company said in a statement.
“Throughout this process, all our operations will continue uninterrupted,’’ president and CEO Leonard Asper said in the statement. “We are firmly committed to moving quickly to restructure the company and emerge from creditor protection financially stronger and more competitive.”
Asper and members of his family have also pledged to invest up to $15 million in connection with the restructuring, which he estimated would take between four to six months.
The Companies’ Creditors Arrangement Act (CCAA) filing applies to the Global Television network, specialty channels DejaView, Fox Sports World and MovieTime, and the National Post newspaper, which Canwest said accounts for approximately 30% of its annual revenue. The filing does not include its stable of specialty channels acquired from Alliance Atlantis in 2007, its other newspapers, or its associated on-line and mobile operations.
FTI Consulting Canada has been appointed as monitor in the CCAA proceedings and will oversee operations of the named entities during the recapitalization, and will also assist during the implementation of its restructuring plan.
A special committee of the Canwest board of directors will oversee this process and has retained Hap Stephen as a chief restructuring advisor to lead and manage the restructuring process.
Canwest said that regular operations will continue to be managed by existing management. There were no layoffs or other assets sales immediately announced.
– Lesley Hunter
