Canwest newspapers out of creditor protection

After being acquired for $1.1 bil by U.S. bondholders

TORONTO -- Canwest Global Communications Corp.'s newspaper chain has successfully emerged from creditor protection here after being acquired for $1.1 billion by U.S. bondholders, led by hedge fund Golden Tree Asset Management LP.

The Canwest Global publishing division went into creditor protection in January 2010 with $1.5 billion of debt amid a worsening Canadian ad market.

After its recent purchase, the newspaper chain has been renamed Postmedia Network Inc., and is being run by Paul Godfrey, a former publisher of the National Post newspaper, as CEO.

Canwest Global has also secured court approval for the $2 billion sale of its TV assets to Shaw Communications, and will now seek creditor approval for its financial restructuring on July 19.
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