Tuesday, October 06, 2009

Canwest starts bankruptcy filing

Trading in Canwest stock, once considered a blue chip security, has been suspended by the Toronto Stock exchange, pending a determination by the exchange of whether it should be listed at all.

It had to come to that. It's been inevitable, really, since the Alliance-Atlantis deal, maybe even from the time Conrad Black snookered Izzy Asper with the newspaper deal.
Shareholder equity is likely wiped out.
The Aspers are no longer in control of Global TV and the National Post, and their ownership of the rest of the company appears to be unlikely.
As this unfolds, Canadian media will likely go through the biggest one-time shake-up in a century.
This marks the death of media convergence in Canada, which is a good thing both for journalism and the public interest.
The best scenario: Nortel-style break-up and sale to new corporate entities.
The worst scenario: break-up and integration into Canada's existing moribund media oligarchies, with lay-offs, further cuts to local coverage and closure of some titles.


meddy said...

The last bit of Black's empire, the Chicago Sun-times , has been sold for 5 million.

Neat how this works --
The Chicago investor group, led by banker James Tyree, agreed to pay about $5 million in cash and assume $20 million worth of the Sun-Time’s liabilities. Tyree’s group would get the media company’s 59 newspapers and websites including the Chicago flagship tabloid paper.
A Stalking-Horse bid is an initial bid on a bankrupt company’s assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid, called the lead bidder. This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company’s assets. However, it is unclear whether Sun-Times Media Group will have any other suitors, which has sought buyers for months, and has contacted more than 46 parties to gauge their interest.

It's clear now. The court accepted the "Stalking horse bid"

Ian said...

It may turn out to be quite a bargain.