Newly released court documents provide a glimpse into the infighting that occurred before CanWest Limited filed for bankruptcy protection last Friday. CEO Leonard Asper, whose company owes $1.5 billion dollars, accused the newspaper group’s secured lenders—–mainly Canada’s big banks—of putting their interests ahead of the company’s other creditors. He wrote in a January 4 letter that he “profoundly disagrees” with their decision to push the chain into “early filing.” The Bank of Nova Scotia is acting head of the secured creditors and, in a sharply-worded response, pointed out that Canwest still owes at least $100 million in payments on loans since last May, and that the secured lenders have been more than patient with the company.
CanWest CEO trying to stop sale of papers
Says improving economic conditions can only benefit everyone involved
FILED UNDER: Business