The company's bond indenture contains cross default/acceleration provisions with a $25 million threshold. The missed payment is less than the threshold. Should subsequent payments take the aggregate of missed payments beyond the threshold or should bank lenders accelerate maturity - the entire (approximately) C$1.065 billion bank credit facility is in default - the bonds' cross default/acceleration will be triggered. The bond indenture has a 60 day (post notice) cure for a default and a 30 day (post notice) cure for acceleration. Given the significant potential for the company's defaults to eventually involve all creditors, the ratings outlook is negative. The rating actions effectively conclude a review initiated on April 13, 2009.
http://dealbook.blogs.nytimes.com/2009/10/07/canwest-bankruptcy-filing-hobbles-its-media-holdings/
The PDR's LD suffix indicates a limited default, i.e. only a component of the company's debt structure is in default. The company's bond indenturecontains cross default/acceleration provisions with a $25 million threshold. The missed payment is less than the threshold. Should subsequent payments take the aggregate of missed payments beyond the threshold or should bank lenders accelerate maturity - the entire (approximately) C$1.065 billion bank credit facility is in default - thebonds' cross default/acceleration will be triggered. The bond indenture has a 60 day (post notice) cure for a default and a 30 day (post notice) cure for acceleration. Given the significant potential for the company's defaults to eventually involve all creditors, the ratings outlook is negative. The rating actions effectively conclude a review initiated on April 13, 2009.
http://pulse.alacra.com/analyst-comments/Canwest_Media_Inc-C2535357
http://dealbook.blogs.nytimes.com/2009/10/07/canwest-bankruptcy-filing-hobbles-its-media-holdings/
In a statement, the family said it would provide 15 million Canadian dollars ($13.9 million) of the 65 million Canadian dollars in new financing that the units require.
Chris Diceman, a media analyst with DBRS, a Toronto credit rating agency, told The Times that it was possible that whoever supplied the additional 50 million Canadian dollars in equity would also acquire control. In any case, he anticipated that special voting shares that are now the source of the Asper family’s control would retain little influence after the restructuring. It was also unclear if Leonard J. Asper, the president and chief executive, would remain in that role.
Canwest’s most attractive assets are 13 cable channels it bought in 2007 with a private equity division of Goldman Sachs
