Troubled Canadian media firm Canwest may have to shut down its flagship newspaper The National Post on Friday unless another holding company would be willing to take it over, Reuters reported. The company, which submitted bankruptcy filings on behalf of its Global Television Network and the Post earlier this month, says creditors are unwilling to support the money-losing paper any longer. The parent company is working to resolve its C$4 billion ($3.74 billion) debt for several months. When it filed for bankruptcy, the company said it was trying to minimize any disruption and “preserve the value of these business operations.” It would appear as if the company had a sudden change of heart.
Canwest is waiting for bankruptcy court approval to shift the Post into a new subsidiary of Canwest Publishing. That hearing is also set for tomorrow and will determine if the paper gets to live another day. But its prospects don’t look good. As Canwest itself said in court documents, the Post, which employs 277 people, has never been profitable since its founding in 1998. For the year ended Aug. 31, the newspaper experienced a net loss of C$9.3 million ($8.7 million).