And the missed interest payment is worded to say includes cross currency swap payment also: GAAP filing restatement issue
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CITATION: Canwest Publishing Inc., 2010 ONSC 222COURT FILE NO.: CV-10-8533-00CL
[8] On May 29, 2009 the Limited Partnership failed, for the first time, to make certain interest and principal reduction payments and related interest and cross currency swap payments totaling approximately $10 million in respect of its senior secured credit facilities. On the same day, the Limited Partnership announced that, as of May 31, 2009, it would be in breach of certain financial covenants set out in the credit agreement dated as of July 10, 2007 between its predecessor, Canwest Media Works Limited Partnership, The Bank of Nova Scotia as administrative agent, a syndicate of secured lenders (“the LP Secured Lenders”), and the predecessors of CCI, CPI and CBI as guarantors. The Limited Partnership also failed to make principal, interest and fee payments due pursuant to this credit agreement on June 21, June 22, July 21, July 22 and August 21, 2009.
[Limited detailing of the non arms length dervitives the debtors sold in non arms length transactions to Canwest, makes the GAAP 09 Canwest accounting dervative losses more than 150 million for 09.]
[9] The May 29, 2009, defaults under the senior secured credit facilities triggered defaults in respect of related foreign currency and interest rate swaps. The swap counterparties (the “Hedging Secured Creditors”) demanded payment of $68.9 million. These unpaid amounts rank pari passu with amounts owing under the LP Secured Lenders’ credit facilities.
[Last day of Canwest corporate tax year end.]
[10] On or around August 31, 2009, the Limited Partnership and certain of the LP Secured Lenders entered into a forbearance agreement in order to allow the LP Entities and the LP Secured Lenders the opportunity to negotiate a pre-packaged restructuring or reorganization of the affairs of the LP Entities. On November 9, 2009, the forbearance agreement expired and since then, the LP Secured Lenders have been in a position to demand payment of approximately $953.4 million, the amount outstanding as at August 31, 2009. Nonetheless, they continued negotiations with the LP Entities. The culmination of this process is that the LP Entities are now seeking a stay of proceedings under the CCAA in order to provide them with the necessary “breathing space” to restructure and reorganize their businesses and to preserve their enterprise value for the ultimate benefit of their broader stakeholder community.
GAAP filings on early 09 missed interest payment
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Two quotes, altered . Did Canwest overstate the missed interest payment. This is thee interest payment that gave the 8% seniornotes the right to demand all their capital back. Note that Ten sale paid all outstanding interest. So this interest was paid.In March 2009, Canwest Media Inc. (“Canwest Media”) did not make an interest payment which was due on its 8% senior subordinated unsecured notes and was in default under the terms of that indenture. The guarantors of the Canwest Media debt obligations include Canwest Global, Canwest Media, Canwest Television Limited Partnership, the National Post Company and other wholly owned subsidiaries (the “Canwest Media Entities”),
"In March 2009, Canwest Media did not make an interest payment of US$30.4 million which was dueon its 8% senior subordinated unsecured notes and is in default under the terms of that indenture.The guarantors under the Canwest Media debt obligations include Canwest Global, CanwestMedia, Canwest Television Limited Partnership, the National Post Company and other whollyowned subsidiaries (the “Canwest Media Entities”) but exclude Canwest (Canada) Inc., CanwestLimited Partnership and its subsidiaries including Canwest Publishing Inc., CW Investments Co.and its subsidiaries including CW Media Holdings Inc. and Ten Holdings and its subsidiaries."
