TORONTO, May 15 (Reuters) - Canwest Global Communications Corp, Canada's biggest media company, is selling its indirect interests in four Turkish radio stations as it fights to shore up its debt-laden balance sheet.
Canwest, which owns Canada's Global television network and a chain of daily newspapers, did not disclose the value of the deal with Spectrum Medya, a Turkish-based company.
It said the proceeds will be used to pay down debt outstanding under a credit facility of its main subsidiary.
Winnipeg, Manitoba-based Canwest's decision to sell the stations comes just days before a May 19 deadline in negotiations with its creditors and noteholders.
Canwest already owes a $30.4 million interest payment to the noteholders, who now also have the right to demand the payment of about $761 million in principal. However, the investors have agreed not to do this while talks continue.
While critical, the missed interest payment is only the tip of the iceberg for Canwest, which has a debtload of close to C$4 billion ($3.4 billion), some of it dating back to its 2000 acquisition of newspaper assets from Hollinger International.
Meanwhile, the recession continues to severely depress the advertising market, which is the lifeblood of Canwest's stable of newspapers and TV stations. It has also dampened the appetite of any potential buyers of Canwest assets.
Aside from its newspapers and Global, the company also has television operations in Australia, through its stake in Network Ten.
Analysts have said Canwest could file for bankruptcy protection, but the company thus far has continued to negotiate with creditors and extend deadlines rather than involve the courts.
A big part of its debt dates back to the C$3.2 billion deal with Hollinger International.
The acquisition made Canwest the country's biggest publisher of daily newspapers. It included 13 big-city dailies as well as 126 community newspapers, Internet assets and a 50 percent stake in the National Post. The company later bought full control of the Post.
In 2007, Canwest expanded its television holdings by partnering with an affiliate of U.S. investment bank Goldman Sachs to buy specialty-TV group Alliance Atlantis Communications for C$2.3 billion.
Canwest is controlled by the Asper family of Winnipeg. Its shares closed 2 Canadian cents lower at 36 Canadian cents on the Toronto Stock Exchange on Friday.
($1=$1.18 Canadian)
(Reporting by Wojtek Dabrowski; editing by Rob Wilson) Keywords: CANWEST/RADIO (wojtek.dabrowski@reuters.com; +1-416-941-8009; Reuters Messaging: wojtek.dabrowski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Canwest, which owns Canada's Global television network and a chain of daily newspapers, did not disclose the value of the deal with Spectrum Medya, a Turkish-based company.
It said the proceeds will be used to pay down debt outstanding under a credit facility of its main subsidiary.
Winnipeg, Manitoba-based Canwest's decision to sell the stations comes just days before a May 19 deadline in negotiations with its creditors and noteholders.
Canwest already owes a $30.4 million interest payment to the noteholders, who now also have the right to demand the payment of about $761 million in principal. However, the investors have agreed not to do this while talks continue.
While critical, the missed interest payment is only the tip of the iceberg for Canwest, which has a debtload of close to C$4 billion ($3.4 billion), some of it dating back to its 2000 acquisition of newspaper assets from Hollinger International.
Meanwhile, the recession continues to severely depress the advertising market, which is the lifeblood of Canwest's stable of newspapers and TV stations. It has also dampened the appetite of any potential buyers of Canwest assets.
Aside from its newspapers and Global, the company also has television operations in Australia, through its stake in Network Ten.
Analysts have said Canwest could file for bankruptcy protection, but the company thus far has continued to negotiate with creditors and extend deadlines rather than involve the courts.
A big part of its debt dates back to the C$3.2 billion deal with Hollinger International.
The acquisition made Canwest the country's biggest publisher of daily newspapers. It included 13 big-city dailies as well as 126 community newspapers, Internet assets and a 50 percent stake in the National Post. The company later bought full control of the Post.
In 2007, Canwest expanded its television holdings by partnering with an affiliate of U.S. investment bank Goldman Sachs to buy specialty-TV group Alliance Atlantis Communications for C$2.3 billion.
Canwest is controlled by the Asper family of Winnipeg. Its shares closed 2 Canadian cents lower at 36 Canadian cents on the Toronto Stock Exchange on Friday.
($1=$1.18 Canadian)
(Reporting by Wojtek Dabrowski; editing by Rob Wilson) Keywords: CANWEST/RADIO (wojtek.dabrowski@reuters.com; +1-416-941-8009; Reuters Messaging: wojtek.dabrowski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.