9 Jan 2010

Canwest to sell newspaper group

7:30 am on 9 January 2010

Canwest Global has put its entire newspaper division under bankruptcy protection as it seeks a buyer for the group.

The Canadian media company said it had filed for creditor protection to help advance an ongoing restructuring plan.

RBC Capital Markets is to oversee the sale and search for a buyer for the newspaper group.

Canwest owns 10 dailies including The Montreal Gazette, Ottawa Citizen and Calgary Herald and 26 community newspapers.

As well as its newspaper publishing, the divisions filing for protection include Canwest's associated digital media, online and mobile operations.

In a statement, the company said its creditors had agreed to take over the newspaper group unless a buyer comes forward with a better offer.

The company also said it had arranged C$25 million ($US24 million) in financing from its senior lenders.

The BBC reports Canwest's Global Television network and National Post newspaper were put under bankruptcy protection several months ago.