2 more weeks for CanWest
TEN's parent company wins another 2 weeks from bankers.
- Published by David Knox
- on
- Filed under News
TEN’s parent company CanWest has won another fortnight’s reprieve from its bankers as it continues its battle to avoid filing for protection from creditors.
According to The Australian, CanWest, which owns 56.6 per cent of TEN, had originally agreed to waive “certain borrowing conditions” relating to a part of its $4.5 billion debt until yesterday (Sydney time). That has now been extended by another two weeks.
CanWest could face an even more crucial deadline next week after it failed to meet a separate $US30.4 million ($43 million) interest payment on senior subordinated notes in the middle of last month.
The company was entitled to 30 days grace on that debt, which now expires on April 14.
CEO Leon Asper said CanWest was facing “unprecedented economic pressures” to which it had to adapt. His memo said CanWest had taken steps to reduce operating costs by as much as $100 million for the group in Canada alone.
This Easter TEN staff were instructed to take extra leave and invited to restructure their hours to a permanent shorter working week.
Source: The Australian
6 Responses
The vultures are circling ever so slowly!
@Kenny – Canwest sold TV3 a couple of years ago.
Same thing happened in 1989. Westfield bought Ten at the top of the market in 1987, then the stock market crashed, and Westfield sold Ten to a journalist at a bargain basement price two years later.
By 1990, Ten was in recievership, and by 1992, CanWest bought into the network.
I hope the Canadian bankers, have some sense, and order that CanWest sell Ten. It is getting to the position that Ten needs a defibrillator (the instrument doctors use to revive heart patients) before the inevitable CanWest collapse, wipes Ten (and it’s share price, as well as current network value) out.
If CanWest wisely opted to sell Ten off 4 or 5 years ago, they would’ve sold it at the top of the market and got a price they stand no chance of obtaining now.
Sorry Andrew B, Nine couldn’t buy a pack of toothpicks just at present. This is what happens when wanna-be moguls “buy” things on the “credit card”. Canwest owes A$43m in ONE debt alone, only for interest, not including any principle. Nine/CVC owes ????? Na. WIN could buy it out of Petty Cash. They already own part of it. They would only be able to buy Sydney, Melbourne & Brisbane as they own stations in FNQ, Adelaide & Perth.
As an aside, why does TEN spend so much on foreign news?? CBS, CNN, ITN, BBC, APTN, Reuters, SNTV.
In NZ, Canwest’s TV3 is #1 in news, and has only APTN.
Its probably not allowed under our laws, but maybe 7 and 9 could go halves in buying ch 10. That would allow sharing or programs and a revival of 10HD on 7HD and 9HD. It would actually increase diversity of programming in my opinion.