Canwest Media hopes third time's the charm

Struggling broadcaster gets more grace time on credit talks

TORONTO -- Canadian broadcaster Canwest Global Communications on Tuesday said that subsidiary Canwest Media has received another two-week extension in talks with senior lenders to renegotiate a CAN$300 million ($243 million) credit facility.

The deadline has now been pushed to April 21 after it was earlier extended two times.

"During the two-week period, senior lenders have agreed to provide additional access to credit availability," Canwest Global said in a statement. "Based on current cash-flow projections, the company believes that it will have sufficient liquidity to continue to operate normally through the period."

Separately, the Winnipeg-based broadcaster faces an April 14 deadline to make a missed $30.4 million interest payment to U.S. bondholders who hold $761 million in debt.

Failure to pony up money owed to U.S. bondholders or eventually amend its credit facility could put Canwest Global in default on its overall CAN$3.9 billion ($3.15 billion) debt load, which the broadcaster is attempting to recapitalize.
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