George S. May Business Blog

Canwest given another dose of life support — $24.2 million

Just when it seemed like time was about to expire for Canwest, the media giant has been given another breath of air. The National Post newspaper and the Global Television Network, both owned by Canwest and both currently under bankruptcy protection, arranged debtor in possession financing of as much as $24.2 million from nearly half of its senior lenders. In addition, Canwest’s Financial Post has reported that the bankruptcy court also extended protection to the company’s other papers; likely a precursor to Canwest beginning the sale process.

The Lenders’ support will go directly to Canwest Limited Partnership, a division which owns 26 newspapers and their related online/mobile properties and 11 dailies (including The National Post).

Believe it or not Canwest’s publishing group actually rakes in nearly $1bn a year. The problem is, that it dealing with a debt one and a half times their annual revenue. The financing should allow the publishing group to continue until it is sold off. More details in this release

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