CanWest's Australian TV network was sold for 634 million CDN, yet the cash flow entered from sale is only 199 million

CanWest's forward-looking cash flow expenditure declaration, hides 400 million in cash, to appear broke
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Dear Neil,

I have attached the release we issued on September 23, 2009 when we announced the sale of our shares in Ten Network Holdings.

In response to your question what happened to the rest of the proceeds, as the release indicates CDN$426 million was deposited with the trustee for the benefit of the holders of the 8% senior subordinated notes.

Regards
Hugh
HHarley@canwest.com






Canwest Releases Projected Capital Expenditures and Other Financial Information Oct6,09 [News release issued to investment accounts.]

The following is a projection of the cash flows, cash and secured obligations of CMI and the subsidiary credit parties under CMI's secured credit facility for the expected duration of the CCAA filing(1):

.................................................................Projected
.................................................................for the three months ending((2))
(in thousands of Canadian dollars) ...............................November 30, 2009 ..February 28, 2010
Canadian Television
Receipts .........................................................124,691 ............127,127
Operating disbursements ..........................................(150,387) ..........(123,979)
Capital expenditures .............................................(4,173) ............(4,587)
Corporate and Other
Net operating cash flows .........................................(4,643) ............(2,901)
Restructuring disbursements ......................................(7,649) ............(7,156)
Advance from proceeds from sale of Ten Network Holdings Limited ..190,000 ????............-
Financing disbursements ..........................................(3,195) ............(384)
Total Net Cash Flow ..............................................144,644 ............(11,880)
(1) Cash flows projections reflect the effects of the CCAA filing
and, are therefore not comparable to normal course operations.
Cash flow projections are affected by seasonal changes in working
capital, which include a substantial use of working capital in the
three months ended November 30, 2009.
(2) These cash flow projections are derived from weekly cash flow
projections. The three months ended November 30, 2009 include the
period from September 7 to December 6, 2009 and the three months
ended February 28, 2010 include the period from December 7, 2009
to February 28, 2010.


....................................Projected as at
(in thousands of Canadian dollars) ..6-Sep-09 ..6-Dec-09 ..28-Feb-10
Cash - unrestricted .................2,633 .....23,277 ....11,397
Cash - restricted ...................2,500 .....2,500 .....2,500
Secured revolving credit facility ...19,000 ....- .........-
Secured notes .......................105,000 ...- .........-

On emergence from a CCAA filing, which is assumed to be on February 28, 2010, Canwest has projected the following cash transactions:
(in thousands of Canadian dollars)
Unrestricted cash as at February 28, 2010 ..........11,397
Equity proceeds ....................................65,000
Repayment of secured intercompany note .............(85,000)
Claims .............................................(8,000)
Retention and restructuring ........................(8,000)
Transaction costs ..................................(10,000)
Emergence financing requirement (cash) .............(34,603)
Emergence financing requirement letters of credit ..(2,000)
Total emergence financing requirement ..............(36,603)


[ Why is CanWest voluntarily filing for creditor protection? Add in the full Australian TV Ten sale proceeds, and CanWest has over 400 million in cash still.]