Canwest debt restructuring deadline passes

No word on agreement from broadcaster and its creditors

The latest debt restructuring deadline for Canwest Global Communications Corp. on Tuesday passed without news of an agreement between the embattled Canadian broadcaster and its creditors.

Winnipeg-based Canwest Global faced an April 21 deadline to agree to new debt repayment terms with senior lenders and U.S. bondholders.

Failure to satisfy its creditors could put Canwest Global on the road to possible bankruptcy protection. The Canadian broadcaster has already
breached the terms of a $300 million credit facility and failed to pay overdue interest of $30.4 million on $761 million in senior notes.

The U.S. noteholders are in a position to call in their $761 million principal, a move they have so far resisted to give Canwest Global more time to raise cash to service a knee-buckling $4.1 billion debt load.
comments powered by Disqus