Troubled Canadian media giant Canwest has found some breathing room, at least for the moment. The Winnipeg-based company, which owns the National Post newspaper and the Global Television Network, both of which have been under bankruptcy protection, arranged debtor-in-possession financing of up to C$25 million ($24.2 million) from about half of its senior lenders. Additionally, the bankruptcy court has also extended protection to the company’s other newspapers, immediately paving the way for the company to begin the sale process, Canwest’s Financial Post reported.
Lenders’ support is specifically going to Canwest Limited Partnership, the division which includes The National Post as well 10 other dailies, 26 community newspapers, and those papers’ related online and mobile properties.
Canwest’s publishing group, The LP, claims almost $1 billion in yearly revenue. However it has roughly $1.5 billion in debt, which is partly stems from the buyback of a 25 percent stake in 2007 for just under half a billion dollars. The financing will allow the publishing group to continue until it is sold off. More details in this release