CanWest newspapers sold for $1.1-billion

[CHIMO]

The auction for CanWest Global Communications’ newspapers has found a buyer. A bid of $1.1-billion, made by a group of CanWest's unsecured creditors, has been approved, the company announced late Monday.

The creditors have brought National Post president Paul Godfrey aboard to operate the newspapers. Their offer includes $950-million in cash funding.

The cash amount in the bid is equal to what was owed to CanWest's creditors, including Canada's major banks. In the sale of the 46 newspapers, the banks gave precedence to offers that could offer more cash that would allow them to recoup their money and avoid remaining as creditors in the company.

All of CanWest's newspapers, including the National Post, are to remain open, the company said.
http://www.theglobeandmail.com/report-on-business/canwest-newspapers-sold-for-11-billion/article1563937/

Moral: Unsecured creditors have deep pockets.

[daleo]

1. I don't see the point of this

Though there may well be some accounting trick at work.

Otherwise, what's the point of having the publisher of the National Post (which has never made a dime) boss of the whole chain? It seems like someone has decided that more of the same will magically start to pay off. It's like someone stuck in the ice, just stepping on the gas harder.