Canadian media company Canwest Global Communications said on Thursday that its Canwest Limited Partnership unit has reached an agreement with senior secured lenders while discussions about a potential recapitalization deal continue.
Senior lenders agreed not to take action against the Canwest unit for previously announced payment defaults until Oct. 31, in exchange for which it will pay all outstanding interest and fees due, and resume making payments as they come due.
The agreement is contingent on the Winnipeg-based company's unit meeting certain milestones, including reaching a recapitalization deal by the end of September.
Canwest Limited Partnership owns and operates 12 daily newspapers and 23 community papers.
In August, Canwest Limited Partnership had said the unit would not make an Aug. 1 interest payment of $18.5 million in its 9.25 percent senior subordinated notes.
Canwest Global is struggling under a debt load of about C$4 billion ($3.7 billion.)
($1=1.078) (Reporting by Phil Wahba; Editing by Gary Hill)