Newspapers around the world have been hit and hit hard, not just from lost of advertising revenues due to the global recession but let’s face it there model is pretty old and in many cases never embraced the true power of the Internet. Canwest is no stranger to these troubles times that newspapers and media companies have been facing for the last year, and they have now asked a court for bankruptcy protection against a number of their key holdings including the National Post and the Globe Television Network. The media giant has been losing revenues and was down 14% last quarter and has been unable to make their debt payment which was due back in March 2009.
In a press release issued today Canwest President and CEO Leonard Asper said “Throughout this process, all our operations will continue uninterrupted, we are firmly committed to moving quickly to restructure the company and emerge from creditor protection financially stronger and more competitive.”
The majority of Canwest shares are owned by the Asper family who is looking for “at least” $65 million in new equity financing. Will Canwest get the help it needs? Can it ever recover from the financial nightmare?