The following statement was issued by McMillan LLP, counsel to the agent bank for Canwest LP's senior secured lenders
Canwest LP's senior secured lenders wish to ensure that the going concern operations of the company are adequately protected. To do so, as part of the CCAA filing senior secured lenders have presented a fair, reasonable and fully-financed proposal to acquire the whole of the company's business as a going concern. After due diligence, it was determined there is value in acquiring the whole of Canwest LP's business, given the operating synergies that can be realized from a national chain of newspapers and online businesses.
Should the proposal be successful, the senior secured lenders will facilitate the creation of a new Canadian company with an independent board of directors to manage the ongoing operation of the assets. The majority of the company's voting shares would be Canadian owned, and all other standards required by the
Within the terms of the proposal, it is envisioned that the new company would retain substantially all of Canwest LP's employees and would assume all existing collective bargaining agreements and obligations related to rank-and-file employee pensions and benefits.
The senior secured lenders believe the new company would benefit from a strong competitive advantage with the leading English-language newspaper in each of its markets and a national flagship publication.
For further information: Ann DeRabbie, Spokesperson for the agent bank for Canwest LP senior secured lenders, (416) 933-1344
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