Court extends Canwest creditor protection
Co. has until June 30 to sell debt-laden newspaper divisionTORONTO -- An Ontario court has given debt-laden Canwest Global Communications Corp. more time to sell off its insolvent newspaper division.
Ontario Superior Court Judge Sarah Pepall on Monday extended creditor protection for the Canwest LP newspaper unit from April 14 to June 30.
Winnipeg-based Canwest Global in January first filed for creditor protection for its publishing group, and at the same time placed the unit on the auction block.
The sale of Canwest LP aims to help repay around $1 billion in debt to a consortium that includes Canada's five largest banks.
The 12 dailies, 26 community newspapers and related assets that are part of Canwest LP have been squeezed by an industry-wide advertising slump.