TORONTO — Canwest Global Communications Corp. (TSX:CGS) has arranged another reprieve from its lenders and noteholders, this time until May 5.

Canwest, whose previous extensions expired Tuesday, said Wednesday morning it is continuing discussions with the secured lenders and a committee of holders of its eight per cent senior notes.

It said the lenders have agreed to extend the waiver of borrowing conditions for two weeks, and during that period they will continue to provide credit to the owner of the Global television network, an array of speciality TV channels, a chain of big-city newspapers and the National Post.

Observers had expected another extension, but also said patience for Canwest, which is $4.1 billion in debt, is running short.

The Winnipeg-based media conglomerate has violated terms of a senior secured credit facility and failed to pay US$30.4 million in interest due since March 15 on the notes. Wednesday's extension came after talks continued into the early morning.

The noteholders are entitled to demand repayment of the US$761 million outstanding as well as the missed interest.

Canwest has been crushed by its debt load after buying the former Southam group of papers from Conrad Black's Hollinger group in 2000 for $3.2 billion, then spending $2.3 billion in 2007 for the Alliance Atlantis specialty TV channels. The economic slump has deepened its troubles by shrivelling ad revenue.

Canwest, controlled by the family of founder Izzy Asper, has been trying to unload assets to reduce debt, but it has been unable to make major sales into a disastrous global media market.

It had a net loss of $1.44 billion in its latest quarter including a $1.2-billion writedown of newspaper assets, which followed a $1-billion writedown of TV holdings late last year.

Reported by The Canadian Press.