Wednesday, May 6, 2009

Deadline time again for Canwest Global

Deadline time again for Canwest GlobalThe Winnipeg headquarters of Canwest Global.(John Woods/Canadian Press)

Canwest Global Communications Corp. faces a Tuesday night deadline on an overdue $30.4 million payment to some of its lenders.

The latest deadline comes after the company was granted a two-week extension on the payment. Last month, a committee of its noteholders, who own about 70 per cent of the outstanding notes, agreed not to demand repayment until May 5.

The company could get another extension on the payment or could hammer out a new deal with its creditors.

The company's Canwest Media Inc. division is also up against a deadline on a waiver of some borrowing conditions.

While the company's creditors could demand repayment on $761 million US in outstanding principal, as well as the missed interest payment, some observers have said they don't see a lengthy list of possible buyers if the creditors eventually force a sale of Canwest assets.

The owner of the National Post and a chain of daily newspapers across the country as well as the Global television network, Canwest has about $3.9 billion in outstanding debt.

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