This Canwest disclosure is not good enough, as only suggests that before missed Sept interest payment, how much interest was owed, zero. The scheduled Sept 15 interest payment was 30.4 million
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
On October 1, 2009, Canwest Media repaid $396 million (US$368 million) senior subordinated
notes and accrued interest of $34 million (US$32 million). Canwest Media is in default under
the terms of the 8%
Canwest Media is in default under the terms of the 8% Notes indenture as a result of not making interest payments that were due in September 2009. Canwest Media and the Ad Hoc Committee agreed to a forbearance agreement and a series of extensions under which the 8% Note holders would not exercise their rights to demand payment thereby allowing sufficient time for a recapitalization of the Company. On October 5, 2009, the Company entered into the Recapitalization Agreement with the Ad Hoc Committee setting out the principal terms of the proposed recapitalization of the Company, which terms were subsequently amended pursuant to the Amended Recapitalizatio Agreement. The Amended Recapitalization Agreement sets out a number of conditions and
milestones and expires in August 2010 or earlier if certain conditions are not met
The 8% Notes are subject to compromise and have been classified as liabilities subject to compromise. The Company ceased accruing interest on these notes effective on the date of the Canwest Media CCAA Proceedings. The interest which would have accrued from October 6, 2009 to February 28, 2010 was $14.4 million (US$13.7 million).
