Canwest To Make Changes To Newspaper Auction After Noteholders Complain

Canwest Global Communications Corp. will make changes to the way the court-supervised sale of its newspapers and online businesses will work, a company spokesman said Monday. A committee of noteholders had complained the bidding process for Canwest LP, which holds the big city dailies like the Ottawa Citizen and the Montreal Gazette, was not robust enough, the Canadian Press reported. Canwest spokesman John Douglas said the company worked with the group and a mutual agreement has been reached. Details of the changes were not immediately available, but Douglas said they would be revealed in court Tuesday. In documents filed with the Ontario Superior Court, the lenders said the bidding process "as it currently stands will not bring about a robust and competitive bidding process ... and instead will deter such a result." The noteholders want potential bids under the process disclosed and details of the plan by the Big Five Canadian banks to make a "stalking-horse" bid for the assets released. They also want to extend the time for bids. Read more. >
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