CanWestMARK BLINCH
CanWest Global Communications Corp. announced Thursday it had received notice of delisting from the Toronto Stock Exchange effective at market close Nov. 13, 2009.
Trading in CanWest shares, which sit at 23.5 cents, is to remain suspended.
The media conglomerate's stock was halted Oct. 5 when it filed for creditor protection under a mountain of debt. The company made its first court appearance in Toronto Wednesday where it received approval for a timetable that would see its restructuring completed by the end of January.
CanWest is, however, facing stern resistance from U.S. investment bank Goldman Sachs which is concerned that a multibillion-dollar deal with CanWest could be jeopardized by too speedy a process.
Goldman suggested a time line that tight could threaten a key agreement forged between CanWest and the investment bank in 2007 when they paired up to buy Alliance Atlantis Communications Inc. for $2.3-billion.
CanWest has nearly $4-billion in debt, incurred mostly when it bought Conrad Black's newspaper assets in 2000 and the group of specialty channels from Alliance Atlantis in 2007.
Not all of its business units filed for creditor protection. The divisions included are CanWest Television LP, which holds Global Television, MovieTime, DejaView and Fox Sports World, and the National Post Company.
The filing did not include CanWest companies that hold the urban dailies - including the Montreal Gazette, Edmonton Journal and Ottawa Citizen - and the specialty channels acquired in the Alliance Atlantis deal.
The TSX delisting was imposed for failure by CanWest to meet the continued listing requirements. Any appeal of the decision must be initiated by Oct. 21, 2009.