WINNIPEG, Feb. 2 /CNW/ - Canwest Global Communications Corp. ("Canwest"
or the "Company") announced today changes to Canwest Media Inc.'s ("CMI") $300
million senior credit facility.
Canwest and CMI have reached agreement with the senior lenders to waive
certain borrowing conditions and to limit borrowing until February 27, 2009 to
$20 million in excess of the approximately $92 million that has already been
advanced. Based upon current cash flow projections, the Company believes that
access to the reduced facility will enable it to continue to operate normally
through this period.
The waivers follow the Company's first quarter announcement, that CMI may
not be able to comply with its existing quarterly total financial leverage
ratio covenants in fiscal 2009. Since that announcement, there has been a
further deterioration in the Canadian economy including in the retail sector
which has negatively affected some of the Company's business units beyond what
was originally forecast, such that CMI may not be able to comply with its
quarterly financial leverage covenants for the second quarter.
The parties will continue to discuss further amendments which, if
successful, would reinstate CMI's access to the full amount of its credit
facility following February 27, 2009 and enable CMI to comply with its
financial leverage covenants going forward.
Canwest continues to take proactive steps to reduce its operating and
capital costs, restructure its operations and improve efficiencies. It is also
reviewing its strategic alternatives and continues to actively pursue
opportunities to divest of non-core operations and assets, and collect other
amounts that it is owed.
Forward Looking Statements:
This news release contains certain forward-looking statements about the
objectives, strategies, financial conditions, results of operations and
businesses of Canwest. Statements that are not historical facts are
forward-looking and are subject to important risks, uncertainties and
assumptions. These statements are based on our current expectations about our
business and the markets in which we operate, and upon various estimates and
assumptions. The results or events predicted in these forward-looking
statements may differ materially from actual results or events if known or
unknown risks, trends or uncertainties affect our business, or if our
estimates or assumptions turn out to be inaccurate. As a result, there is no
assurance that the circumstances described in any forward-looking statement
will materialize. Significant and reasonably foreseeable factors that could
cause our results to differ materially from our current expectations are
discussed in the section entitled "Risk Factors" contained in our Annual
Information Form for the year ended August 31, 2008 dated November 24, 2008
filed by Canwest Global Communications Corp. with the Canadian securities
commissions (available on SEDAR at www.sedar.com), as updated in our most
recent Management's Discussion and Analysis for the three months ended
November 30, 2008. Unless required by law, we disclaim any intention or
obligation to update any forward-looking statement even if new information
becomes available, as a result of future events or for any other reason.
About Canwest Global Communications Corp.
Canwest Global Communications Corp. (www.canwest.com), (TSX: CGS and
CGS.A) an international media company, is Canada's largest media company. In
addition to owning the Global Television Network, Canwest is Canada's largest
publisher of English language daily newspapers and owns, operates and/or holds
substantial interests in conventional television, out-of-home advertising,
specialty cable channels, web sites and radio stations and networks in Canada,
New Zealand, Australia, Turkey, Indonesia, Singapore, the United Kingdom and
the United States.
For further information:
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