LP Entities”) voted in favour of a resolution to approve a plan of compromise or arrangement; is Acquireco to be a Canadian Corporation,
http://www.canwestglobal.com/media/viewNews.asp?NewsroomID=1178
Canwest Limited Partnership’s senior secured lenders approve Plan of Compromise or Arrangement
Qutoe, "(Winnipeg - January 27, 2010) Canwest Global Communications Corp’s (“Canwest” or the “Company”) announced today that senior secured lenders of its subsidiary, Canwest Limited Partnership / Canwest Societe en Commandite and certain of its subsidiaries (collectively, the “LP Entities”) voted in favour of a resolution to approve a plan of compromise or arrangement (the “Plan”), which forms part of the support agreement entered into by the LP Entities with its senior secured lenders on January 8, 2010 (the “Support Agreement”).
The Plan was filed with the Ontario Superior Court of Justice (Commercial List) (the “Court”) on January 8, 2010 in connection with the Initial Order granted in the LP Entities’ Companies’ Creditors Arrangement Act proceedings.The senior secured lenders vote met both the required majority in number of the LP Entities’ senior secured lenders which cast votes on the Plan, and represented over two-thirds in amount of their claims. When the Plan was filed with the Court on January 8, 2010, it had the support of more than 48% in amount of claims. Support has increased as 153 of 157 senior secured lenders at the meeting, representing 89% of the amount of claims at the meeting, voted today to approve the Plan.
In accordance with the Support Agreement, the LP Entities will bring a motion before the Court seeking an order sanctioning the Plan should no superior offer emerge from the Sale and Investor Solicitation Process currently being conducted by RBC Capital Markets, financial advisor to the LP Entities."
http://www.canwestmediaworks.com/investors/investor_documents/F10/q1/Canwest_Q1_2010_Release.pdf The proposed financial restructuring transaction is supported by members of the senior secured lending syndicate representing over 48% in principal amount of the Limited Partnership’s senior secured obligations and represents the culmination of lengthy arm’s length discussions between the LP Entities and their senior secured lenders.
The LP Entities and the senior secured lenders have entered into a Support Agreement and have negotiated an Acquisition and Assumption Agreement (the “AA Agreement") together with a Plan of Compromise and Arrangement in respect of the senior secured lenders’ claims (a “Plan”) which have been filed with the Court. In addition, the LP Entities have engaged RBC Capital Markets to conduct a comprehensive sale and investor solicitation process (the “Sale and Investor Process”) within the restructuring proceeding to canvass the market for superior offers for the business than the one put forth by the AA Agreement.
Under the proposed AA Agreement, a new company incorporated by the senior secured lenders (“Acquireco”) would acquire substantially all of the LP Entities’ assets and assume certain of their operating liabilities. Subject to senior secured lender and Court approval and any superior offer emerging from the Sale and Investor Process, the senior secured debt will be transferred to “Acquireco” in exchange for debt and equity in Acquireco.
