CanWest reprieve
An extension to April 21 for Canwest Global Communications in its lending crisis….
“Canwest Global Communications Corp (CGS.TO), Canada’s largest media
company, announced yet another extension to lender talks on Tuesday as
it fights a massive downturn in the advertising market,” reported Reuters. “Debtholders agreed not to demand payment of their notes for a period that ends on April 21, Canwest said in a statement.”
Said the company statement:
(Winnipeg
– April 14, 2009) Canwest Global Communications Corp. (“Canwest” or the
“Company”) announced today that its subsidiary, Canwest Media Inc.
(“CMI”) has entered into an extension agreement with the members of an
ad hoc committee of 8% noteholders (“noteholders”) who hold
approximately 70% of the outstanding notes.
As
previously announced, CMI did not make its March 15, 2009 interest
payment of approximately US$30.4 million relating to its outstanding 8%
senior subordinated notes. Under the terms of the notes, failure to
make this interest payment on or before April 14, 2009 would permit the
8% noteholders to demand payment of the approximately US$761 million
principal amount outstanding as well as the unpaid interest payment and
associated default interest. Under the terms of the extension
agreement, the noteholders have agreed not to demand payment of their
notes for a period ending on April 21, 2009, to coincide with the
expiry date of CMI’s waiver agreement with its senior lenders.
CMI
continues discussions with its senior lenders and noteholders to
develop a framework for a potential recapitalization transaction and to
secure the necessary extensions to allow the recapitalization process
to proceed.
Canwest
also announced that Canwest Limited Partnership has initiated
discussions with its senior lenders with respect to an amendment of the
financial covenants under its senior credit facility to enable Canwest
Limited Partnership to maintain compliance with these financial
covenants through the remainder of fiscal 2009.
