By Chris Temelkos
There may be drastic changes coming to CanWest papers. The Canadian company has accepted an offer from its creditors for $1.1 billion. President Paul Godfrey will remain head of the struggling company.
CanWest is currently operating in bankruptcy protection and is being sold to a group representing the companies bondholders, CanWest says the new owners, who are both Canadian and American will maintain existing newspaper operations. The sale still has yet to be approved by an Ontario Superior Court.
The company is facing both economic and technological problems, but will eventually become a publicly traded company meaning it could soon be back in full swing as long as eager investors are willing to buy into it. The only downside to the sale and public offering is there could be several changes to the way things are run, but that’s not necessarily a bad thing.
For now, it’s a waiting game, with the hope that the advertising market and economy will recover and the eventual stocks will begin to rise and dig the struggling company, originally founded by Izzy Asper, back to life and prosperity. This may be the first step in the revival of a hard hit industry, perhaps other companies will follow CanWest by example and crawl out of their debt.