Canwest Global Communications Corp. won a reprieve on some of its debt problems until April 7. The company will use the time “to negotiate borrowing terms on its debt with senior lenders and said it was working with noteholders and other stakeholders to recapitalize the company,” reported the CanWest-owned National Post. The company had a March 11 deadline for renegotiating borrowing conditions on its debt as well as an estimated $38-million in repayments due Friday, noted Canadian Press.
Excerpts of NP story:
The Winnipeg-based media company said it has $30-million in cash on hand and $20-million available from a line of credit that should provide enough money to operate normally until the new bank deadline of April 7. The company also notified bondholders it will be unable to make a scheduled March 15 interest payment of US$30.4-million. However, the bondholders cannot call in the US$761-million loan until April 14, during which time Canwest can make the payment without penalty. In an internal memo, Canwest chief executive Leonard Asper assured employees the company continues to pay its short-term creditors on time.