Friday, February 27, 2009

Crunch Day

This looks like a non-starter and non-story: Reuter's Randal Palmer reports the government, at this time, has no plans to bail out the Aspers.
Meanwhile, ugly rumors circulate that the National Post could fold within days.
If memory serves, the rumors started in 2001. I don't think the Post will close anytime soon. It may be reconstructed, but at the core of it is the Financial Post, and I, for one, would love to own a piece of that.
I spent today among Parliamentary Press Gallery folks. You could cut the fear in the air into blocks and stack it. I've never seen anything like it.
Buyouts... layoffs... shortfalls... closures... management changes... it was all part of the grim wallpaper.

UPDATE
Canwest has been given eight business days -- until March 11 -- to come up with a plan to make its bankers happy.
Good luck.
There's a very interesting fact buried in this Reuters story. The bankers have killed the unused $188 million in Canwest's $300 million line of credit. In other words, it has to pay all its bills (including debt interest) from its own cash flow. It no longer has credit with the banks.
I'll be very interested to see what the Aspers consider to be "non-core assets" in the next few days.

3 comments:

Anonymous said...

I hope you're right about the fp.

However to make the fp viable again I think it will take a white knight willing to reinvest in the newsroom and take losses in the short/mid term.

The question is, in this environment, who will that white knight be?

Ottawa Watch said...

Onex.

Rachel Marsden said...

Swartz is a successful, wealthy guy because he's able to tell the difference between his charitable ventures and his business ones. I think he'd probs rather keep donating to Mt Sinai Hosp than the National Post.