Canwest Media will miss US$30-million interest payment on March 15

The  company that owns  the Vancouver Sun, Vancouver Courier, Province, National Post, and North Shore News will not make a US$30.4-million interest payment to its senior lenders by a March 15 deadline.

Canwest Global Communications Corp. issued a news release today (March 11) declaring that its subsidiary, Canwest Media Inc., has worked out a deal with its senior lenders to  extend a waiver of certain borrowing conditions until April 7.

As part of the agreement, the holders of US$761 million in debt will not demand payment of the principal if the March 15 installment is paid by April 14. Canwest Media Inc. is in "discussions" with representatives of an ad hoc committee that represents a "significant majority" of the holders of these eight percent senior subordinated notes.

The parent company, Canwest Global Communications Corp., holds a debt of approximately $3.7 billion and owns Global TV and numerous specialty channels, as well as media properties  in Australia,  New Zealand, Turkey, Indonesia, Singapore, the United Kingdom, and the United States.

Canwest shares closed at 30 cents today on the Toronto Stock Exchange.

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