Canwest Global Communications has gained $175 million in new financing, the media corporation announced today.
In a news release, Canwest said some of its lenders have agreed to buy "12% senior secured notes" in its subsidiaries Canwest Media Inc. and Canwest Television Limited Partnership for $100 million. Canwest Media is also receiving a $75 million loan from CIT Business Credit Canada.
According to the release,
Both transactions are expected to close on May 21, 2009. Senior lenders under its existing credit facility extended their waiver agreement until June 2, 2009 and also agreed to defer certain payments aggregating approximately $10 million until June 2, 2009, which will allow completion of the new facilities tomorrow.
CMI and the members of the Ad Hoc Committee have entered into a further agreement and forbearance until June 15, 2009, subject to completion of the issuance of the Senior Secured Notes.
A story on the deal published in the Globe and Mail says the deal will enable Canwest to operate for about three months while it continues to work toward a restructuring.
Crawford Kilian is a contributing editor of The Tyee.
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freebear
3 years ago
Gotta keep selling houses and cars to kick start the economy!
Of course they got financing, gpotta sell stuff in some media somewhere!
And thats why the media supports the car dealers of Canada (at least what is left of the car dealers!)
Who buys the most ad space?
Ever heard of the 'Wheels' section; or two!
Jeffrey J.
3 years ago
Wheels Within Wheels
What a small world it is. CIT Group pulled its financing from local lender Forest and Marine Financial, sending them to file for creditor protection and helping crash our forest industry. But now, CIT Group is willing to bail out CanWestGlobal from creditor protection. I guess real jobs mean little, while the media monopoly counts. What are the odds the Harper regime steps forward to offer refinancing help to CanWestGlobal? Great coverage, as always.
seth
3 years ago
boycott
Don't only stop watching their television and reading their papers but stop shopping with their advertisers as well.
This is the media organ of the darkside.
Skywalker
3 years ago
The lengths the corporate sector will go to..
...just to keep a conservative propaganda organ alive. It proves that owning a newspaper is not about news it is about influencing public opinion to the right.
ROBBINS Sce Research
3 years ago
It isn't good that a
It isn't good that a dominant player in BC media should be so certainly over leveraged. CanWest needs to find a way to bring in new blood--and take the pressure off. A person with financial troubles is one thing--a major media conglomerate in financial trouble is not a pretty sight, and not good for our province imho as offended sys.