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Hollinger International's vendor financing agreement demands full repayment of loan, based on CanWest pre tax earnings. During when an abritrator is reworking aspects of this deal, and declares a final settlement. CanWest didn't even recieve the full 51 million settlement amount awarded. Quote, "Jan. 29, 2009 Canwest receives an arbitrated award of about $51-million for unresolved adjustments and claims surrounding the acquisition of newspaper assets from Hollinger."Quote, "In March 2009 Canwest in an arbitration award received $34 million in full settlement in its dispute with Hollinger International Inc."
http://www.financialpost.com/story.html?id=2071964
Hollinger paid a fine to CanWest for misrepresenting newspapers pre tax earnings, yet can expropirate the buyer company based on pre tax earnings. CanWest shareholders have rights.
Active concern of both our nations' securities regulators, that Hollinger International (Sun-times) as part of their US Chapter 11, in the disposition of the vendor financing agreemnt at 15 cents on the dollar. Holliinger International not banckrupt, if their CanWest bonds valued at real value. [Fifty nine papers sold for 5 million cheats the free market.]
Issues with a Canadian company selling Canada's newspapers, and transfering the vendor financing agreement off shore to avoid Canadian taxes. Could be that, certain hedge funds owe Canadian taxes on the the sale of the Canadian newspaper vendor financing agreement bonds. It is not right to depict these bonds as regular, as bonds registered under rule 144A, restricted from being sold on the open market in North America.
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CanWest sold Ten for more than 50.1% for 1.2 billion. Extra funds for Ten, CanWest Ten funds could pay down intercontect guaranteed debt, also pays interest costs of this debt. Ten stable.
Aug. 4, 2009Ten issues new stock, dilutes Canwest's stake Australian TV network Ten Network Holdings raises $124-million through equity offering to pay down debt but dilutes Canwest's stake to 50.1% from 57% in the process.
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CanWest has paid more that 60 to 70 percent of purchase price. Also gave shares. Also transfered not compete fees of 20 million. Also dervatives costs of hundreds of millions, and the 275 milliion bond restructuring the interest rate from12 to 8 percent. Seats on CanWest board. News control. An alterted CanWest financial documents like using interest rate averages to disclose debt to shareholders. Etc. [Ruling in Enron is that influencing debt disclosure is a billion dollar fine.]
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