Canwest granted bankruptcy protection

Canwest Global Communications Corp. says it will be business as usual in response to today’s announcement that it has been granted bankruptcy protection from the Ontario Superior Court of Justice. The protection applies to Canwest Television Limited Partnership (including Global Television, MovieTime, DejaView and Fox Sports World) and The National Post Company and certain subsidiaries. Canwest also announced that it has secured debtor-in-possession (“DIP”) financing of up to $100 million. The additional liquidity provided by the proceeds from the sale of TEN Network Holdings Limited’s shares, combined with the company’s operating revenue and the DIP financing are intended to provide sufficient liquidity to meet ongoing obligations and ensure that normal operations continue during the restructuring period. Canwest’s board has retained Hap Stephen as a chief restructuring advisor to lead and manage the restructuring process. The Communications, Energy and Paperworkers Union of Canada reacted harshly to Canwest’s announcement, warning that it will fight to ensure that workers do not lose their pensions or severance payments in the restructuring. “Employees have done everything they can to sustain this company,” says VP Peter Murdoch. “Thousands have already lost their jobs, and there has been no wage increase for years. Though management salaries have been excessive – $49 million to eight people from 2001 to 2008, while during that same period over 1,000 Canwest employees lost their jobs.”

Canwest granted bankruptcy protection

Brief | October 6, 2009

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