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CanWest Gets More Time to Restructure

February 2, 2010  By

CanwestCanwest has submitted and received an extension on its creditor protection in order to give the company more time to restructure.

In order to do so, the company submitted a request to extend creditor protection until to April 14. The court’s protection was originally set to expire this Friday. Ontario Superior Court Judge Sarah Pepall approved the extension this morning as well as the changes to the newspaper auction plan.

According to the Canadian Press, a committee of noteholders has complained that the bidding process for Canwest LP is not robust enough. In response to this, the first phase of the auction has been extended a week, to March 5. The complaint was that the process gave lenders too much power in the auctioning process.

Bloomberg reports that 15 potential bidders have signed non-disclosure agreements to look into the newspapers’ confidential information. Canwest current publishes 12 daily newspapers, including the Vancouver Sun, Montreal Gazette and the Ottawa Citizen.

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