Bankrupt Canwest sells off its TV operations and newspapers

SHAW Communications said yesterday it reached a deal with Canwest Global Communication’s debtholders to acquire the television operations of the bankrupt Canadian media company for $2bn (£1.3bn) including assumed debt.

Shaw reached an agreement with Goldman Sachs and other senior subordinated noteholders allowing it to acquire all of the shares of a restructured Canwest upon completion of a proposed recapitalisation transaction.

The Canwest media empire has struggled for survival after a rapid rise to glory trapped it under a massive debt load – some $4bn – forcing it to file for creditor protection for its television operations in October.

Canwest’s newspaper arm may also be sold to Torstar, publisher of the Toronto Star. The papers being sold off include the National Post and Vancouver Sun.