Canwest Downgraded as Debt Deadline Looms

TORONTO: Several analysts have warned investors to avoid acquiring stock in Canwest Global Communications, with the Canadian giant expected to miss its $30.4 million debt interest payment tomorrow.

According to a Reuters report, if Canwest misses its payment deadline tomorrow, investors could demand repayment of the $761 million outstanding principal on the 8-percent senior subordinated notes. Moody’s Investors Service said that it "appears inevitable" that the company will not be able to make the payment. National Bank Financial analyst Adam Shine wrote in his investors’ note: "We see no compelling reason to own, let alone buy Canwest shares, which we would continue to avoid."

Canwest has a debt of some $3 billion and has been looking to offload select non-core assets in a bid to raise funds.