Canuck newspaper biz continues restructure
Canwest Global newspaper arm renamed Postmedia NetworkTORONTO – Canwest Global Communications Corp.'s former newspaper division has been renamed as the Postmedia Network by its new creditor-led ownership group.
The name change follows the sale of the Canwest LP business for $1.1 billion to a consortium that includes U.S. bondholders and CEO Paul Godfrey.
The recent newspaper division sale moved CanWest Global a step closer to emerging from court-led creditor protection.
Canwest Global also secured court approval for the $2 billion sale of its TV assets to Shaw Communications, with creditor approval for its financial restructuring to be voted on July 19.
In another sign of a restructuring Canadian newspaper industry, the Canadian Press, the domestic newswire service, is to end 93 years as an industry cooperative to become a private company.
Canadian Press' three largest newspaper group stakeholders, CTVglobemedia, Torstar Corp. and Gesca will each become 33.35% owners of a new entity, Canadian Press Enterprises.
The new owners will now conduct labor talks with the unionized members of Canadian Press to complete the shift from not-for-profit cooperative to a for-profit company.