On October 5, 2009, the Canwest Media Entities entered into the Recapitalization Agreement with members of the Ad Hoc Committee pursuant to which they intend to pursue a recapitalization transaction related to the Canwest Media Entities
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[The CCAA recapitalizaton transaction signed on Oct 5 with the 8% note holders, is after the disiposition of Canwest shareholders cash reserves. ]
CANWEST GLOBAL COMMUNICATIONS CORP.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 2009
(UNAUDITED)
Quote, "Effective August 31, 2009, the Canwest LP Entities entered into a forbearance agreement with the administrative agent under the senior secured credit facility (the “Administrative Agent”) under which the lenders agreed to not take any steps with respect to the defaults under the senior secured credit facility and to work with management of Canwest LP to develop and implement a consensual pre-packaged restructuring, recapitalization, or reorganization of Canwest LP and its subsidiaries. In accordance with the terms of the forbearance agreement, the lenders cancelleall undrawn amounts under the revolving credit facility. Canwest LP agreed to pay the interest owing and the continuing interest on its senior secured loans and the interest amounts outstanding under the terminated hedging arrangements. The forbearance agreement was subject to a number of conditions and required the achievement of certain milestones. The forbearance agreement, as extended, expired on November 9, 2009. Canwest LP was also in default under the terms of its senior subordinated unsecured credit facility and senior subordinated unsecured notes and did not enter into any forbearance arrangements with the unsecured lenders or the holders of the unsecured notes."
[Should cite that Sept 15 missed interest payment on the 8% notes.]
Quote, "On September 22, 2009 the Canwest Media Entities entered into a Use of Cash Collateral and Consent Agreement with an ad hoc committee of 8% Notes holders representing over 70% of the 8% Notes issued by Canwest Media (the “Ad Hoc Committee”). On October 1, 2009, the Company sold its interest in Ten Network Holdings Limited (“Ten Holdings”) for net proceeds of $618 million (see notes 9 and 16). In accordance with the Use of Cash Collateral and Consent Agreement the proceeds were advanced to Canwest Media by its wholly-owned Irish subsidiary which held the investment in Ten Holdings and were utilized as follows: $102 million to repay the 12% notes, $85 million to repay the ABL facility and to provide operating liquidity and $431 million to reduce its obligations under its 8% Notes indenture."
[These bonds Canwest bought back dollar per dollar, were trading under .70 cents on the dollar.]
