Skip to content

Scotiabank, creditors to control CanWest newspapers

The Globe and Mail reports that, “The country’s largest chain of big-city daily newspapers is soon to be run by a group of its creditors, led by Bank of Nova Scotia.”

“Scotiabank and the other creditors are now taking greater control over the newspaper unit as the role of the controlling Asper family recedes.”

“The creditor group is not expected to hold onto the newspapers. The chain of dailies could be taken public as a national print media play in 2010, according to sources at both Scotiabank and CanWest LP.”

“BMO Nesbitt Burns analyst Tim Casey said yesterday, ‘We don’t expect any existing newspaper publishers in Canada will bid for the entire portfolio.'”

“(But) the best way to preserve the value and revenue of CanWest LP is to keep the papers together as a national chain, according to the sources at Scotiabank and CanWest LP.”

“Private equity funds and banks have shown an interest in backing a management buyout of the papers, led by National Post chief executive officer Paul Godfrey.”

Our media release on the situation at CanWest can be read at http://canadians.org/media/other/2009/07-Oct-09.html.

In it Council of Canadians chairperson Maude Barlow says, “The CanWest crisis highlights how our newspapers are owned by an anonymous group of international investment funds. These developments are a very troubling sign for media democracy in Canada.”

The Globe and Mail article is at http://theglobeandmail.com/report-on-business/scotiabank-creditors-to-control-canwest-dailies/article1315897/?.