Tuesday, October 06, 2009

CanWest - Tits Up - Files for Bankruptcy Protection

The Fat Lady has sung. CanWest Global has thrown itself on the mercy of the bankruptcy court.

The Winnipeg-based company has filed for protection under the Companies Creditors Arrangement Act. The CCAA is a vehicle for insolvent companies to have the court shelter them from the claims (and claws) of creditors while they try to reach a settlement with the major, secured creditors. Wee, little, insignificant ordinary creditors are toast.

If the company comes up with an "arrangement" satisfactory to the court it can emerge as a functioning, operating entity conveniently shed of those little creditors and with the majors pared down. If the court doesn't like what it sees, it's over - bankruptcy.

What remains to be seen is what happens to the Aspers, their equity in CanWest and their future role in the management of the company.

Way to go David. Way to go Lenny. Way to go Terry and Jonathon and Lorne and all the rest of you hacks. Here's a tip. Make up your mind whether you're going to produce a newspaper or toilet paper. If it's the latter, you'll do better if you leave out the ink.

1 comment:

Anonymous said...

And you can add Kelly McParland and Don Martin too to the list of names that I will not be sorry to miss.