Canwest Global subsidiary secures credit facility default forbearance

By Caroline Salls

Pittsburgh, Sept. 10 - Canwest Global Communications Corp. subsidiary Canwest LP has entered into a forbearance agreement with lenders under its senior secured credit facility while they continue discussions regarding the framework for a potential recapitalization transaction, according to a company news release.

Under the forbearance agreement, the senior lenders have agreed not to enforce their default-related rights before Oct. 31.

In addition, the limited partnership has agreed to pay all outstanding interest and fees due under the senior credit facility and associated hedging agreements and to resume paying interest and fees due under those agreements during the forbearance period.

The forbearance agreement is subject to the subsidiary reaching an agreement on the principal terms of a recapitalization transaction by Sept. 30.

According to the release, Canwest LP has also begun discussions with representatives of an informal committee of holders of its 9¼% senior subordinated notes due 2015.

Canwest Global is a Winnipeg, Man.-based media company.

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