Thursday, July 02, 2009

Canwest survives another few weeks

Canwest has published a press release saying it's been given yet another extension by creditors. I'm posting part of it to make a few points. First, look at those interest rates. Small wonder the newspapers and TV stations are being squeazed so hard. Second, few companies would chronicle their own sad little lifelines:

(Canwest Media Inc.) is continuing discussions with the members of an ad hoc committee (the “Ad Hoc Committee”) of 8% noteholders of CMI regarding a recapitalization transaction.

The holders of the new 12% senior secured notes of CMI and Canwest Television Limited Partnership as well as CIT Business Credit Canada Inc., the provider of a senior secured revolving asset-based loan facility to CMI, have agreed to extend to July 17, 2009, the date by which CMI must reach an agreement in principle with members of the Ad Hoc Committee in respect of a recapitalization transaction, as well as certain other milestones that were to be achieved by June 30, 2009. The date by which CMI must enter into a definitive agreement in respect of a recapitalization transaction has been extended to July 31, 2009.

CMI and the members of the Ad Hoc Committee have also entered into a further extension agreement and forbearance to July 17, 2009.


Anonymous said...

Especially shocking when interest rates are at a 75 year low and personal secured lines of credit are between two and three percent interest.

Anonymous said...

Though when the CBC can't attract one per cent of the
English speaking population between 18 and 70 for its programming on some nights, Canwest isn't the only media organization facing problems.

Ottawa Watch said...

I almost never watch network TV. I have XpressView, which has all the network channels below 200 on the dial. Once in a while, I check to see what tghey're showing but it's all dreck. It's either the most banal American crap or poorly-made, poorly acted CanCon. After 40 years of CRTC-mandated Canadian content, i can still spot a Canadian show in a heartbeat. A few, like Trailer Park Boys, have a spark of creativity (but are really just novelties). The rest are just terrible.