Canwest shares to trade on TSX exchange
Demoted to Toronto Stock Exchange's junior exchangeTORONTO -- Embattled Canwest Global Communications Corp. will start trading its stock on the Toronto Stock Exchange's junior exchange Monday after its shares are delisted from the main TSX exchange at the close of day Friday.
Shifting Canwest Global's subordinated voting and non-voting stock to the highly speculative venture capital bazaar represents the latest demotion for the broadcaster after it tipped most of its business units into creditor protection on Oct. 6 (HR, Oct. 6).
Canwest Global saw its stock suspended at 23.5 cents in mid-October.
Rather than appeal the TSX delisting notice, the broadcaster successfully applied for a listing on the TSX Venture Exchange.
Canwest Global could yet secure a relisting on the main TSX exchange after it emerges from creditor protection.
As part of Canwest Global's proposed restructuring, existing shareholders are to eventually hold a 2.5% stake in the company after it sheds debt and assets.
The majority of Canwest Global shares will be held by U.S. bondholders and other senior creditors as part of an agreed debt-for-equity swap.