Former Canwest completes Shaw transaction, restructuring implemented

By Caroline Salls

Pittsburgh, Oct. 27 - 2737469 Canada Inc., formerly, Canwest Global Communications Corp., has completed its purchase and sale transaction with Shaw Communications Inc. under Canwest's consolidated plan of compromise, arrangement and reorganization, according to a company news release.

As a result, the company said it has disposed of all of its operating assets and stopped doing business.

In addition, Canwest's subordinate voting shares and non-voting shares have been delisted from the TSX Venture Exchange.

The officers and directors of the Canwest Media entities have resigned from their positions, the release said.

Court-appointed monitor FTI Consulting Canada Inc. is expected to commence bankruptcy proceedings for 2737469 Canada, Canwest Media and other Canwest Media entities.

According to the release, the reorganization plan was implemented under a previously reported order of the Ontario Superior Court of Justice.

The monitor will make creditor distributions.

As previously reported, Canwest reached agreements earlier this year with Shaw Communications 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 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.

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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