Canwest gets another extension from lenders
Last Updated: Wednesday, April 22, 2009 | 4:22 PM ET
CBC News
Canwest Global Communications Corp. said Wednesday it has been granted a two-week extension from its lenders on a debt payment, until May 5.
The company said a committee of its noteholders, who own about 70 per cent of the outstanding notes, has agreed not to demand repayment until that date.
Canwest Media Inc. and its senior lenders also agreed to extend the waiver of some borrowing conditions until May 5, Canwest also said.
During the two-week period, Canwest Media's lenders have agreed to provide the company with more access to credit.
April 21 had been the deadline for Canwest Media to make an overdue payment of $30.4 million on its eight per cent notes, and to restructure its senior debt.
While some analysts believe Canwest is running out of extensions, at least one sees a dearth of buyers lining up to get the company's assets.
"That's why we've had these postponements and that's why we've basically seen no one willing to pull the curtain down. There aren't any serious options," said Eamon Hoey of Hoey Associates Management Consultants.
"There's really limited opportunities from a strategic perspective as to where you can go with this," said Hoey.
Canwest stock closed up four cents at 28 cents in TSX trading.
With files from The Canadian Press
