Court approves Canwest LP sale

Company looks to sell TV assets next

TORONTO -- Canwest Global Communications Corp. on Friday moved a step closer to emerging from creditor protection when an Ontario court blessed the $1.1 billion sale of its newspaper division.

Justice Sarah Pepall of the Ontario Superior Court approved the sale of Canwest LP -- comprised of daily and community newspapers and digital assets -- to a consortium that includes U.S. bondholders.

"There are currently no alternatives that would provide any recovery to unsecured creditors," Pepall ruled.

Canwest Global will next week seek approval from the same Ontario court for the $2 billion sale of its TV assets to Shaw Communications before it seeks creditor approval for its financial restructuring on July 19.
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