Canwest Global plan moves to creditor vote in Canadian proceedings

By Caroline Salls

Pittsburgh, June 23 - Canwest Global Communications Corp. said that the Ontario Superior Court of Justice has accepted for filing the consolidated plan of compromise, arrangement and reorganization for Canwest Global, Canwest Media Inc. and some of its subsidiaries, according to a company news release.

The plan will be filed under the Companies' Creditors Arrangement Act (Canada) and the Canada Business Corporations Act.

Affected creditors will meet to vote on the plan on July 19.

If the plan is approved by the creditors, Canwest said it plans to ask the court to sanction the plan on July 28.

Canwest said the court also approved previously announced agreements with Shaw Communications Inc. and members of an informal committee of holders of Canwest Media's 8% senior subordinated notes, including an amended Shaw subscription agreement, amended Shaw support agreement and amended committee support agreement.

In addition, Canwest said it has reached an agreement with Shaw, the committee and an informal committee of Canwest shareholders to amend the proposed recapitalization transaction to include a reorganization of the company's capital, under which existing Canwest shareholders will receive a total payment of $11 million.

The company said this is roughly the same amount as originally included in the terms of the recapitalization transaction approved by the court on Feb . 19, and the amendment will have no impact on the treatment of creditors under the recapitalization transaction.

According to the release, about $440 million of a total subscription price will be allocated to satisfy the claims of the 8% noteholders. An additional $38 million will be allocated to satisfy the claims of the CMI entities' other affected creditors.

Canwest Global is a Winnipeg, Man.-based media company that filed for Chapter 15 bankruptcy on Oct. 6, 2009 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 15 case number is 09-15994.

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