c/p thestar.com

Canwest Global Communications Corp. said this morning that it would seek court protection from creditors for the National Post newspaper and Global Television as it attempts to restructure its debt.
The Winnipeg-based broadcaster and publisher said its voluntarily filing under the Companies' Creditors Arrangement Act would give it four to six months of "stability" as it reorganizes.
"Throughout this process, all our operations will continue uninterrupted, including a strong programming lineup on Global and our specialty channels," president and chief executive officer Leonard Asper said in a statement posted on the company website.
"Our business operations remain strong and our stable of media brands continue to lead their markets."
The filing does not include the specialty TV channels Canwest bought from Alliance Atlantis in 2007, or its other daily newspapers and websites.
During the restructuring, Canwest will have access to about $65 million in cash, following the recent sale of some assets, as well as debtor-in-possession financing of up to $100 million "to enable its business units to meet their obligations to employees and suppliers of goods and services provided after the filing date," the company said.
Under the proposal, a small group of bondholders would receive common shares of the restructured Canwest, and current shareholders would own just 2.3 per cent of the shares of the new company.
Asper and other members of Canwest's founding family have agreed to invest up to $15 million in the restructured company, which would also need at least $65 million in new equity financing.
Canwest didn't say how much voting control or operational involvement the Aspers would have after the restructuring.
The company will seek its creditors' approval for the restructuring deal at a meeting to be held this year.
The deal would also need approval of the Canadian Radio-television and Telecommunications Commission and the Toronto Stock Exchange, as well as the court.
Canwest has been selling assets to show lenders that it's making progress on reworking its operations. Most recently, it sold its majority stake in Australian broadcaster Ten Network Holdings.

http://www.thestar.com/business/arti...tor-protection