Lenders give Canwest another 2-week extension

Canwest Global Communications Corp. has another two weeks to reach a deal with lenders, the company said Friday.

The new deadline for the company to recapitalize is July 31.

July 17 was the most recent date for the media company to come to terms with the holders of its debt. However, as has happened frequently since Canwest missed a debt repayment on Feb. 27, the deadline has been extended.

Canwest subsidiary Canwest Media Inc. (CMI) is continuing talks with an ad hoc committee of CMI's eight per cent notes till July 31, Canwest said.

And the holders of the 12 per cent senior secured notes of CMI and Canwest Television Limited Partnership, as well as CIT Business Credit Canada Inc., have extended to July 31 the date for reorganizing the company.

Those lenders granted Canwest more than $175 million in new financing in May to keep the company going while it negotiates with the ad hoc committee.

The U.S. parent company of CIT Business Credit Canada, which has given CMI  a $75 million senior secured asset-based loan, may itself seek bankruptcy protection.

Canwest stock, which has traded for more than $3 in the past year, closed unchanged at 10.5 cents on the TSX.