WINNIPEG – Canwest Media Inc. (CMI) may sell off "non-core operations and assets" – likely its Australian television operations and radio stations in Turkey – as it continues to search for ways to cut costs.
The company also said that it has waived certain borrowing conditions and will limit its borrowing to $20 million, in excess of the approximately $92 million that has already been advanced, from its senior lenders through the end of February.
The move follows Canwest’s announcement last month where it warned that it may not be able to comply with its existing quarterly total financial leverage ratio covenants in fiscal 2009. The company’s first quarter ended November 30.
But Canwest said in a press release on Monday that “there has been a further deterioration in the Canadian economy including in the retail sector which has negatively affected some of the company’s business units beyond what was originally forecast, such that CMI may not be able to comply with its quarterly financial leverage covenants for the second quarter”.
Canwest said it would “discuss further amendments” designed to reinstate its access to the full amount of its credit facility following the February 27 deadline, and enable it to comply with its financial leverage covenants going forward.
