Canwest Global Communications Corp. announced today it had received notice of delisting from the Toronto Stock Exchange effective at market close Nov. 13.
Trading in Canwest shares, which sit at 23.5 cents, is to remain suspended.
The media conglomerate’s stock was halted Oct. 5 when it filed for creditor protection under a mountain of debt. The company made its first court appearance in Toronto Wednesday where it received approval for a timetable that would see its restructuring completed by the end of January.
Canwest spokesman John Douglas downplayed the latest development, suggesting that the media conglomerate has several alternative options, which include appealing the delisting, as well as listing on another stock exchange.
“We could go on the TSX Venture Exchange or the NEX, if we chose to do that. No decision has been made there,” he said.
“We believe that when the financial restructuring is completed in four to six months we’ll emerge a stronger competitor with less debt, and renewed financial outlook. When all of that happens, we believe we’ll have a strong case to be put back on the (TSX) again.”
Canwest’s restructuring process is facing stern resistance from U.S. investment bank Goldman Sachs, which is concerned that a multibillion-dollar deal with Canwest could be jeopardized by too speedy a process.
Goldman suggested a time line that could threaten a key agreement forged between Canwest and the investment bank in 2007 when they paired up to buy Alliance Atlantis Communications Inc. for $2.3 billion.
Not all of Canwest’s business units filed for creditor protection. The divisions included are Canwest Television Limited Partnership, which holds Global Television, MovieTime, DejaView and Fox Sports World, and the National Post Company.
The filing did not include Canwest companies that hold the urban dailies–including the Montreal Gazette, Edmonton Journal and Ottawa Citizen–and the specialty channels acquired in the Alliance Atlantis deal.
The TSX delisting was imposed for failure by Canwest to meet the continued listing requirements. Any appeal of the decision must be initiated by Oct. 21.
