Facing the prospect of bankruptcy, Canwest Global Communications has won another week's reprieve from its lenders.

In a news release posted on the Canwest website Tuesday evening, the corporation said:

Canwest Global Communications Corp. (“Canwest” or the “Company”) announced today that its subsidiary, Canwest Media Inc. (“CMI”) has entered into an extension agreement with the members of an ad hoc committee of 8% noteholders (“noteholders”) who hold approximately 70% of the outstanding notes.

As previously announced, CMI did not make its March 15, 2009 interest payment of approximately US$30.4 million relating to its outstanding 8% senior subordinated notes. Under the terms of the notes, failure to make this interest payment on or before April 14, 2009 would permit the 8% noteholders to demand payment of the approximately US$761 million principal amount outstanding as well as the unpaid interest payment and associated default interest.

Under the terms of the extension agreement, the noteholders have agreed not to demand payment of their notes for a period ending on April 21, 2009, to coincide with the expiry date of CMI’s waiver agreement with its senior lenders.

CMI continues discussions with its senior lenders and noteholders to develop a framework for a potential recapitalization transaction and to secure the necessary extensions to allow the recapitalization process to proceed.

Crawford Kilian is a contributing editor of The Tyee.