Post remove from Goolge CanWest message board: Canadian National Security Issue this story is told

Google and Yahoo readers, deserve the truth that the Ad Hoc committee of 8% note holders are really 12.125% note holders

[This post concerns Canadian National Security. Please do not delete this post.]

Belittles Canada and CGS shareholders, to report that the debt they've been servicing is only 8%. Imagine if the interest rate was a fair interest rate, the debt would mostly be retired! CanWest paid nearly 200 million to turn it's 12.125% bonds into 8% bonds.

CANWEST CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2004(UNAUDITED)
http://www.canwestmediaworks.com/investors/investor_documents/F05/CMIQ1financialstatementswit.pdf
5. LONG TERM DEBT (page.12)On November 18, 2004, the Company completed an exchange offer to exchange a new series of 8% Senior Subordinated notes due 2012 for the outstanding 12 1/8% Senior notes due 2010 issued by the Hollinger Participation Trust. In the exchange offer, the holders of the trust notes received US$1,240 principal amount of new notes in exchange for each US$1,000 of trustnotes. In addition, the Company completed a concurrent offer of notes, proceeds of which were used to retire the 12 1/8% junior subordinated notes held by Hollinger, which had not been participated to the Hollinger Participation Trust. The effect of these transactions replaced the Company’s existing $903.6 million 12 1/8% junior subordinated notes (including accrued interest to November 18, 2004) with new $908.1 million (US$761.1 million) 8% senior subordinated notes. [Junk to Senior.]

The issuance of the new notes was recorded at their fair value at November 18, 2004 of $944 million. The difference between the fair value of the new notes and the book value of the junior subordinated notes together with certain other costs of settling the debt totaling $44 million, was charged to earnings as a loss on debt extinguishment.

The Company has entered into a US$761.1 million cross-currency interest rate swap resulting in floating interest rates on its senior subordinated notes at interest rates based on CDOR plus a margin and a fixed currency exchange rate of US$1:$1.1932 until September 2012. Under it senior Secured Credit facility the Company is required to maintain a fair value of its interest rate swaps and foreign currency and interest rate swaps above a prescribed minimum liability.
[Bond yield is fixed, not floating, not sure how swaps then reduce the fixed interest rate.]

There are also prescribed minimum liabilities with individual counterparties, which have two-way recouponing provisions. The Company was required to make recouponing payments of $137.0 million in the three months ended November 30, 2004 (2003 – $11.2 million), $44.1 million of this recouponing payment related to overhanging swaps and accordingly was reflected in cash flows from operating activities. Further strengthening of the Canadian currency and/or declining interest rates may result in further payments to counterparties.

[A Canadian company, Hollinger, sells Canada's newspapers to another Canadian company, CanWest, and provides vendor financing, that has the sale proceeds and interest exported out of the country -- and also demands the buyer of Canada's newspapers put the Canadian dollar. Scam against Canada; 8% note holders are liable for this.]