[R-G] Canwest Global facing bankruptcy
shniad at sfu.ca
Sat Feb 14 11:45:30 MST 2009
Canwest creaks under debtload, may seek protection
By Wojtek Dabrowski - Analysis
TORONTO (Reuters) - Debt-laden Canwest Global Communications Corp (CGS.TO), Canada's biggest media company, may face bankruptcy as the weak economy wreaks havoc on its stable of television stations and newspapers, and buyers for its assets fail to materialize.
Canwest, publisher of the National Post daily newspaper, has said it will try to exit non-core businesses and is considering the sale of five conventional TV stations. But analysts say there may not be any prospective purchasers waiting in the wings.
Even if the properties are sold, the proceeds would barely make a dent in Canwest's debtload of about C$3.7 billion ($2.96 billion).
"They're on the verge of bankruptcy," CIBC World Markets analyst Bob Bek said of the company. "The equity has been reflecting that for some time."
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