http://www.fitzandjen.com/2009/05/sp-hangs-red-letter-d-on-canwest-newspaper-unit-after-skipped-payment-.html
Quote, "Canwest skipped a C$10 million (US$9.17 million) payment on its staggering debt Friday, and Standard & Poor’s Ratings Services immediately slashed the nearly rock-bottom credit rating on its newspapers unit to a rock-bottom D."
Canwest acknowledged that the defaulted payment gives its lenders the right to demand immediate payment of its C$75 million credit facility -- and even its US$400 million in senior subordinated notes due 2015.
But Canwest, which has about $4 billion in debt when all its many units are totaled up, is becoming an old hand at skipping payments. It declined to pay a US$304 million interest payment on senior notes that was due March 15. [Not the 30 million interest payement.]
Despite that, it lined up $175 million in new debt financing. A committee of major creditors has agreed to a forbearance period until June 15.
