Canada's media giant,CanWest Global, has placed its newspaper division in bankruptcy protection after falling in more than 1 billion dollars in debt. Several Canadian newspapers and dailies such as the Calgary Herald and Montreal Gazette and over 5,300 employees are facing an uncertain future. Along with the newspaper division, the online and mobile divisions have also filed for protection. This comes after CanWest's television division was put under bankruptcy protection in October.
With the announcement of bankruptcy filed under the Companies Creditors' Arrangement Act, a group of lenders led by Canada's 5 largest banks has agreed to take ownership of the newspaper division. The Asper family, who founded CanWest Global, would subsequently lose ownership.The lenders also announced that they would plan to create a new Canadian newspaper company with an independent board which would manage the ongoing newspaper operations. They also reasurred employees by announching that all of their jobs, as well as pensions and benefits would be retained. Israel (Izzy) Asper, who died in 2003, founded CanWest Global in 1974. With television networks, newspapers, and dailies, the CanWest Global media group changed the face of Canadian media.
With the announcement of bankruptcy filed under the Companies Creditors' Arrangement Act, a group of lenders led by Canada's 5 largest banks has agreed to take ownership of the newspaper division. The Asper family, who founded CanWest Global, would subsequently lose ownership.The lenders also announced that they would plan to create a new Canadian newspaper company with an independent board which would manage the ongoing newspaper operations. They also reasurred employees by announching that all of their jobs, as well as pensions and benefits would be retained. Israel (Izzy) Asper, who died in 2003, founded CanWest Global in 1974. With television networks, newspapers, and dailies, the CanWest Global media group changed the face of Canadian media.
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