Canwest newspaper division extends debt talks

Canwest Global expected to seek a buyer for publishing assets

TORONTO -- Canwest Global Communications' newspaper division has been given more time by its creditors to restructure its operations and repay debt.

The broadcaster said its subsidiary, CanWest Ltd. Partnership, which is in default after it missed interest payments on senior secured credit facilities, is in discussions with senior lenders on extending a forbearance agreement that expired on Nov. 9.

CanWest LP, which includes a string of national and community newspapers and online assets, is not part of a separate court-directed restructuring by Canwest Global unveiled on Oct. 6 (HR, Oct. 6).

The Ontario Superior Court earlier approved the transfer of the National Post from parent Canwest Global to CanWest LP to save the national newspaper from closure (HR, Oct. 28).

Canwest Global is expected to seek a buyer for its publishing assets, the National Post included, in a bid to restructure a $4 billion debt load and emerge from creditor protection by January.