Canwest stock nearing two bits a share

[daleo]

CanWest Global Communications | CGS.A-T C$ 0.275 -0.125 -31.25%
CanWest Global Communications | CGS-T C$ 0.340 +0.020 +6.25%

Their "A" stock took a big hit today. Methinks they are circling the drain.

[Prometheus Bound]

1. They were $15 in summer 2006.

I'm not very good with numbers but that sounds like they've lost over 98% of their value in two and a half years.

I think even Bernie Madoff did better than that. Or maybe he invested in CanWest.

[Prometheus Bound]

2. Canwest, lenders extend debt deadline to March 11, credit line cut to $112m

TORONTO - Canwest Global Communications Corp. (TSX:CGS), a Winnipeg media company facing growing financial pressures, says it has had its $300-million credit line permanently cut, but has won a 12-day extension for further talks to stave off a potential bankruptcy protection filing.

The company said late Friday its Canwest Media unit and senior bankers have agreed to extend the waiver on borrowing conditions on its debt until March 11 while they continue talks. The banks have also permanently cut the company's $300 million credit line by nearly two thirds to $112 million.

....Employees at Canwest and its flagship National Post daily in Toronto expressed private concerns that the publication could be forced to close as the parent company looks at all options to deal with its debt troubles.

...Some reports have said the Asper family may have to surrender control of Canwest in return for new financing.

...A company once worth more than $2 billion years ago and about $600 million in early 2008 now has a stock market value of just under $40 million and faces an uncertain future.

Analysts speculate that a major restructuring of Canwest or possible bankruptcy protection filing loom, which could see the company streamlined or split up into various pieces that could be sold to reduce debt.
http://www.winnipegfreepress.com/breakingnews/40425477.html

[daleo]

3. 12 days to go

Interesting. I suspect they are pulling every string they can in Ottawa. They have been very supportive of the Harper government.

[Prometheus Bound]

4. And very supportive of the Chretien govt before that. They must have a lot of friends in Ottawa.

And they could push the fact that Alliance Atlantis goes to foreigners Goldman Sachs if CanWest can't make the payments.

[daleo]

5. Izzy Asper was a fairly odd duck, politically

He did support Chretien, but one got the sense that was more of a personal and tactical preference, rather than a deep ideological conviction. The sons seem to be firmly in the Harper camp, though.

[Prometheus Bound]

6. Agree completely.