CanWest solution around the corner?

Times are tough in the newspaper industry, but it appears that CanWest (CGS:TSX) may be soon ready to announce the first stage of what could be a constructive solution to that company’s massive $4 billion debt burden. That’s certainly one way to take the granting of a two week extension to the defaulted loan conditions (via G&M):

CanWest, whose previous extensions expired Tuesday, said Wednesday morning it is continuing discussions with the secured lenders and a committee of holders of its 8-per-cent senior notes.

It said the lenders have agreed to extend the waiver of borrowing conditions for two weeks, and during that period they will continue to provide credit to the owner of the Global television network, an array of specialty TV channels, a chain of big-city newspapers and the National Post.

Two weeks isn’t a permanent solution to Canwest’s debt problems, so one could assume there may be a meaningful asset sale to announce over the next few days. The lenders are inside the tent, so they know plenty more than the rest of us. Why else would the lenders not recast their deal and give the company a 9 or 12 month lease on life? It worked at Teck, for example.

Could the go-forward plan include shuttering the National Pest?

MRM