Ten Cash promised on Sept23 officially filed -- Canwest executive intentional default on interest due Sept 30 -- next day Oct 1 Ten cash given to vender financing bonds in default-- and a few days later on Oct 6 CCAA Court date
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Did Canwest promise that the day after the defualt and full interest payment, here's 400 million plus back in prinicple, (bonds trading at below a dollar.)
On October 1, 2009 Canwest completed the sale of all its interest in Ten Network Holdings Limited (“TNHL”). Net proceeds of $618 million were used to repay the 12% & CMI is in default of its 8% senior subordinated unsecured notes indenture asa consequence of the non payment of interest due in September 2009.
Consists of $833 million (US$761 million) (2008 - $808 million (US$761 million)) seniorsubordinated notes which are due in 2012 and bear interest at 8.0%. Canwest Media is in default under the terms of its senior subordinated notes indenture as a result of not making interest payments that were due in September 2009.
On October 1, 2009 we sold our interest in Ten Holdings for net proceeds of $618 million. Four days later file CCAA S.36
For Immediate Release
July 10, 2009
In March 2009, Canwest Media Inc. did not make an interest payment which was due on its8% senior subordinated notes and is in default under the terms of that indenture. The Company is in discussions with various parties, including the members of the ad hoc committee of holders of 8% senior subordinated notes of Canwest Media Inc., regarding the recapitalization of the Company that may involve a cash investment and/or a conversion of certain of its existing debt to equity, to reduce the debt of Canwest Media Inc. The Company believes that a significant reduction in its debt is necessary to resolve its liquidity issues and to continue to operate. Failure tocomplete an agreement in principle on a recapitalizationtransaction with the members of the ad hoc committee of the 8% senior subordinated note holders prior to the expiry of its forbearance agreement on July 17, 2009 or to such later date as maybe agreed could result in a demand to immediately repay all Canwest Media Inc. debt. There can be no assurance that a recapitalization will be completed. Canwest Limited Partnership, is in default under the terms of its senior credit facilities, its senior subordinated credit facility and its senior subordinated notes indenture because it failed to make payments of interest and principal due in May 2009 on its senior credit facility and its related hedging derivative instruments and it failed to satisfy the demand for immediate repayment of its obligations related to the hedging derivative instruments. The defaults under the terms of the debt could result in a demand to immediately repay the debt of the Limited Partnership. The payments were deferred in order to preserve liquidity to fund operations while the Canwest Limited Partnership works to effect a recapitalization transaction.
4
Canwest remains focused on reducing operating expenses and driving revenues to enable the Company to capitalize on the economy when it begins to improve. Canwest continues pursue a reorganization of its capital structure that will allow the Company to satisfy its obligations which are currently in default.
For Immediate Release
April 9, 2009
As previously disclosed and reported in its interim consolidated financial statements for the three and six months ended February 28, 2009, Canwest Media Inc. has not complied with the terms of its senior secured credit facility and has not paid interest under the senior subordinated notes which was due on March 15, 2009. On April 7, 2009, the senior secured lenders agreed to waive the events of default arising as a result of the failure to comply with certain covenants until April 21, 2009. During this period the Company will have limited access to additional credit under the senior secured credit facility. Canwest Media Inc. is in discussions with representatives of an ad hoc committee of holders of 8% senior subordinated note holders representing a significant majority of the aggregate principal amount of the 8% senior subordinated notes regarding a forbearance agreement aimed at allowing sufficient time for a recapitalization of the Company that is satisfactory to all of its stakeholders. Failure to reach agreement on a further waiver from the senior lenders and forbearance from the holders of the senior subordinated notes could result in a demand to immediately repay the related debt.
January 14, 2009
Continuation of negative conditions may affect the Company’s ability to meet certain financial covenants in its credit facilities. Based upon current revenue and expense projections, the Company may not be able to comply with its existing quarterly total financial leverage ratio covenants in fiscal 2009. The Company is reviewing and implementing strategies to ensure compliance with its covenants, including strategies intended to improve profitability and reduce debt.
November 27, 2009
Canwest Global Communications Corp. Reports Fourth Quarter
and Fiscal Year End 2009 Results
Highlights
• On October 5, 2009 Canwest entered into a support agreement with the members of
the ad hoc committee of 8% noteholders (the “Ad Hoc Committee”) of Canwest Media
Inc. (“CMI”), whereby, subject to certain conditions, the Ad Hoc Committee agreed to
support a recapitalization plan in respect of CMI. As part of the implementation of the recapitalization plan, and in accordance with the support agreement, the Company
3 together with certain of its subsidiaries, voluntarily filed for creditor protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) on October 6, 2009.
• On October 1, 2009 Canwest completed the sale of all its interest in Ten Network
Holdings Limited (“TNHL”). Net proceeds of $618 million were used to repay the 12%
secured notes issued by CMI and Canwest Television Limited Partnership, advances
under the CIT Business Credit Canada Inc. (“CIT”) credit facility, partially repay
amounts outstanding under the 8% CMI notes and for general corporate purposes.
• On August 31, 2009 Canwest Limited Partnership reached a forbearance agreement
with the administrative agent under its senior secured credit facility whereby the
administrative agent agreed to forbear from acting on certain defaults in the Limited
Partnership's senior credit agreement to November 9, 2009. Canwest Limited
Partnership and its senior lenders are in discussions regarding a further extension of the forbearance period and regarding the framework for a potential financial restructuring.
CMI is in default under the terms of its 8% senior subordinated unsecured notes indenture as
a consequence of the non payment of interest due in September 2009. On October 5, 2009,
Canwest Global Communications Corp. entered into a Support Agreement with the Ad Hoc
Committee which sets out the terms and conditions of a proposed recapitalization transaction
(the “Recapitalization Agreement”). The proposed recapitalization transaction is supported by
members of the Ad Hoc Committee representing over 70% of the outstanding principal amount
of 8% senior subordinated notes issued by CMI. The support of the proposed recapitalization
transaction by the Ad Hoc Committee is subject to the satisfaction of a number of conditions
and the Recapitalization Agreement may be terminated under certain circumstances.
After consideration of all other alternatives, the Company determined, with the support of the
Ad Hoc Committee that a financial and corporate restructuring could be most effectively
achieved within the framework of creditor protection proceedings. On October 6, 2009,
pursuant to the Recapitalization Agreement Canwest voluntarily applied for and successfully
obtained an order from the Ontario Superior Court of Justice (the “Court”) providing creditor
protection under the CCAA for Canwest Global Communications Corp., Canwest Media Inc.,
Canwest Television Limited Partnership (including Global Television, MovieTime, DejaView
and Fox Sports World), The National Post Company and certain non-operating subsidiaries.
Canwest Limited Partnership (and its subsidiaries including Canwest Publishing Inc.)and CW
Investments Co. (and its subsidiaries including CW Media Holdings Inc.) are not included in
these proceedings.
2009 Annual Report
On September 23, 2009 we announced that we had entered
into an agreement with Macquarie Capital Advisers Limited
for the sale of all of our 50.1% ownership interest in Ten
Holdings for net proceeds of $618 million. Proceeds of this
sale would be used to:
• Repay in full, all amounts outstanding under the 12%
senior secured notes of $102 million issued by Canwest
Media and Canwest Television Limited Partnership;
• To deposit $431 million with the trustee for the benefit of
the holders of the 8% senior subordinated notes;
• Retain $85 million for general corporate and working capital
purposes, including to repay all outstanding borrowings
(other than letters of credit) under the senior secured
revolving asset-based loan facility with CIT Business Credit
Canada Inc., which facility will continue to remain available
to Canwest Media after the repayment
On September 22, 2009 the Canwest Media Entities entered into a Cash Collateral and Consent Agreement with an ad hoc committee of 8% senior subordinated unsecured note holders representing over 70% of the 8% senior subordinated unsecured notes issued by Canwest Media (the “Ad Hoc Committee”). On October 1, 2009 we sold our interest in Ten Holdings for net proceeds of $618 million. The net proceeds were advanced to Canwest Media Inc. by the wholly owned Irish subsidiary which held the investment in Ten Holdings and were used as follows: $102 million to repay the 12% notes, $85 million torepay amounts outstanding under the ABL facility and to provide ongoing liquidity and $431 million to reduce its obligations
under its 8% senior subordinated unsecured notes indenture.
The Initial Order created a number of new charges against substantially all of the current and future assets of the Canwest Applicants which subject to the terms of the Initial Order may rank in priority to certain other security interests, trusts, liens, charges and encumbrances. Certain employee and commodity tax obligations are also subject to a super priority claim under bankruptcy legislation. These charges, in order of priority, include an administration charge to secure amounts owing to certain restructuring advisors, up to maximum of $15 million; a DIP Charge to the extent of any obligations outstanding under the DIP financing arrangement described above; and a directors’ charge to secure the indemnity created under the Initial Order in favour of the directors of the Canwest Applicants and a key employee retention plan (“KERP”) charge, with equal priority, to a maximum of $20 million and $5.9 million, respectively. The directors’ charge and the KERP charge are postponed in right of payment to the extent of the first $85 million payable under the senior secured promissory note issued to an Irish subsidiary in relation to the receipt of proceeds on the sale of Ten Holdings (see note 31 to our audited consolidated financial statements).
Interest expense. Interest expense was $325 million for the year ended August 31, 2009 compared to $329 million in fiscal 2008. The interest expense for the year ended August 31, 2009 included charges of $56 million on the termination of derivative instruments that were previously accounted for as cash flow hedges partly offset by a recovery of $65 million related to a change in the expected cash flows of the 8% senior subordinated notes. The remaining increase is due to increases in outstanding debt and higher effective interest rates.
