CanWest Talks Hit Unlikely Snag
CanWest Global Communications Corp.'s efforts to restructure its debt have come up against a series of glitches in the past few weeks that are delaying a deal with bondholders, The Globe and Mail reported. At the top of that list may be the most unlikely of culprits – a television show called MasterChef Australia. The popular cooking program has been a major hit on Australian television this year. That has translated into gains on the Australian stock market. With the network's value suddenly on the rise, CanWest and its biggest creditors have been forced to divide their attention between a debt-for-equity swap and the potential sale of TEN. The stake in TEN is arguably CanWest's most valuable, and most liquid asset. While a sale could generate $600-million in cash, it would also allow CanWest to remove its share of TEN's debt from its books. In that sense, the total impact could be more than $1-billion, Morgan Stanley analyst Andrew McLeod said in a research note. Read more.