Canwest Global says its viewers will not see the company’s current financial crisis reflected in its on-air presence.
Global TV and some of its specialty channel holdings are among the Canwest assets being protected as its parent company struggles with a $4-billion debt.
In the midst of drastic corporate restructuring designed to cope with the financial hurdles, the company is seeking creditor protection it says will provide the time and stability needed to establish a more solid footing.
Global says it is holding meetings with broadcasting, publishing and digital advertisers to discuss the situation and placate industry concerns.
In a statement to staff, company CEO Leonard Asper states that a fire sale of broadcast assets is not being considered, not are programming rights being surrendered.
“We are not contemplating a fire sale of any of our broadcasting assets, nor are our major debt holders,” Asper wrote. “They see the value in keeping the business together and are supporting a restructuring plan that sees a strong broadcasting business emerging in four to six months.
“We are not in danger of having to surrender our programming rights. We have strong relationships with the major US studios and Canadian independent production companies and in conversations with them over the last two days they have signaled their confidence in Canwest. The studios want us to carry their shows in Canada and we have assured them that through the filing process, we have funding to purchase it,” his letter continued.
Asper concludes that Global will not fail to meet its Canadian content obligations.
Canwest has confirmed that the businesses included in yesterday's filing for creditor protection are made up of Canwest Global Communications Corp., Canwest Media Inc., Canwest Television Limited Partnership including Global Television, MovieTime, DejaView and Fox Sports World as well as The National Post Company.
Collectively, these businesses account for approximately 30% of the Company’s revenues.
Excluded from the filing are the CW Media stable of specialty channels, TVtropolis, Mystery TV and Men TV. Canwest Limited Partnership – the Canadian publishing and associated online and mobile operations – is also excluded as it continues to work with its senior lenders on its own financial restructuring.
The recapitalization of the CMI group of companies may include the transfer of the National Post to Canwest Limited Partnership if an agreement with its senior lenders can be reached, a company spokesperson described.
More information about Canwest’s restructuring process can be found at www.canwest.com