The struggling Canwest Global Communications Corp has had its lifeline extended again, for the sixth or seventh time this year (if this keeps up, the story will go into a second series).
It said on its website yesterday that Canwest Media Inc. (“CMI”), a subsidiary:
… is continuing discussions with the members of an ad hoc committee (the “Ad Hoc Committee”) of 8% noteholders of CMI regarding a recapitalization transaction.
The holders of the new 12% senior secured notes of CMI and Canwest Television Limited Partnership as well as CIT Business Credit Canada Inc., the provider of a senior secured revolving asset-based loan facility to CMI, have agreed to extend to July 17, 2009, the date by which CMI must reach an agreement in principle with members of the Ad Hoc Committee in respect of a recapitalization transaction, as well as certain other milestones that were to be achieved by June 30, 2009. The date by which CMI must enter into a definitive agreement in respect of a recapitalization transaction has been extended to July 31, 2009.
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CMI and the members of the Ad Hoc Committee have also entered into a further extension agreement and forbearance to July 17, 2009.
So instead of the usual 14 day extension, it is now 17 days. Canwest is due to reported its third quarter results around the middle of this month after Ten Network, 56% owned, reported a poor third quarter result last week. Ten’s results were two weeks later than they were in 2008. So Canwest is running late as well (understandably).