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Shaw Communicatons Corp. has arranged to purchase control of the restructuring of Canwest Global Communications newspaper and television network.
Shaw Communications would own at least 20 per cent of Canwest's equity and 80 per cent of its voting stock after the deal.
Canwest currently owns the Global television network, one of Canada's largest newspaper chains - including the National Post - and several specialty cable channels. Canwest has been operating under court supervision since last year.
Canwest says the proposed deal with Shaw has the support of key creditors.
Canwest's chairman Derek Burney, says Canwest is "very pleased" with the firm commitment from Shaw and support from the group known as the ad hoc committee of creditors.
The amount that Shaw would pay wasn't disclosed.
"While there is much work still to be done, Shaw's commitment represents an important step towards a successful financial restructuring of Canwest and is supported by the company and the members of the ad hoc committee," Burney said in a statement.
The deal with Shaw, which is a publicly traded company controlled by the founding Shaw family, would manage a restructured Canwest as a stand-alone business with its own board of directors.
Source: Broadcaster, 02/12/2010
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