It wasn't long ago that the way of doing business was to take over companies, and take on a ton of debt to do so. No one was afraid of debt.
Now one of the biggest companies in Canadian media, Canwest, can't even pay the interest on its debt. Does anyone think that Canwest is the only huge company that can't pay the interest on its debt. Peacenik doesn't. Now all that debt is toxic and lethal. It can't be paid off. It can't be ignored. It can't be reasoned with. It doesn't feel pity. It is a black hole. And it is sucking the whole economy into it.
Grant Robertson, Tavia Grant and Andrew Willis
CanWest Global Communications Corp. (CGS.A-T0.19----%) filed for bankruptcy protection
Tuesday after Canada's biggest media company told a judge in Toronto it was now insolvent.
The Winnipeg-based company, which owns the Global Television network, more than a dozen daily newspapers across the country and several specialty TV channels, expects the court ordered restructuring of its debt will take four to six months.
The decision to file for protection under the Companies' Creditors Arrangement Act comes after a year of negotiations with creditors that saw CanWest no longer able to make interest payments on much of its $4-billion debt. The decision to file was made after a board meeting held late Monday.
