THE bankruptcy reorganization of Canada’s largest media company, announced Tuesday, is another sign that the debt-driven model of newspaper and TV chains no longer works.
The company is Canwest Global Communications, Winnipeg. It owns The Vancouver Sun and other big-city papers, as well as The National Post, the more conservative of Canada’s two nationwide papers. Canwest owns Global Television and specialty TV stations. Some of these properties were included in yesterday’s filing and some not.
Canwest’s businesses were roped together by the late Israel Asper with debt that earlier this year was at a staggering $4 billion Canadian. It was too much, and in an environment of lowered advertising revenues, Canwest could not pay the interest on it.