http://www.winnipegfreepress.com/business/breakingnews/torstar-bid-for-canwest-newspapers-in-danger-but-might-pull-together-sources-92511909.html
Quote, "Fairfax had teamed with Torstar to make an offer on the newspapers, which include the National Post and other high-profile dailies like the Vancouver Sun, Calgary Herald, and the Ottawa Citizen. However, Torstar planned to pay for the Canwest papers fully in cash, which would make the offer more attractive to the banks trying to sell the assets. Reports have said that Fairfax prefers an agreement which would include a mix of both cash and bank financing, while the banks Fairfax has approached are reluctant to provide funding for struggling newspapers. The reports said Fairfax refuses to make an offer unless the banks agree to more attractive financing terms."
"Fairfax already owns about 19 per cent of Torstar, though it has lost $175 million on that investment amid the downturn in media company results last year. The firm also owned a 22 per cent stake in Canwest before the company filed for creditor protection. In total, the Canwest chain of newspapers includes 11 dailies and 35 community newspapers. The banks who effectively own Canwest have set a floor price of $950 million for Canwest LP, successor to the former Southam chain of dailies."
"If they get no suitable bid, the banks may decide to bring in new newspaper executives to run the company before they spin it off to the public in a common share offering so they can get their loan money back."
[If the Canadian banks running the show, why is most of the 933 million loan not in Canadian dollars. National Security issue to misrepresent the loan to be Canadian.]
