Canada's largest newspaper chain for sale

One of the world's largest media firms, Canwest Global, filed for bankruptcy protection on Friday for its Canadian publishing group as it tries to sell its websites, 10 dailies and 26 community newspapers.The Winnipeg-based company's television operations and its flagship National Post newspaper were put under court protection several months ago, when advertising revenues dropped in a dour economy.

However Canwest's newspaper division and dozens of its websites had been operating outside of this creditor protection.

In a statement, the company said its secured creditors had agreed to take over the newspaper group unless a buyer comes forward with a better offer.

Certain creditors, which include Canada's five biggest banks, will also provide up to CAN$25-million to Canwest "to meet obligations to current employees and suppliers of post-filing goods and services" under the plan.

RBC Capital Markets has been asked to oversee the sale and search for a buyer.

The newspapers include the Vancouver Sun, the Calgary Herald, the Ottawa Citizen and Montreal's The Gazette, and employ some 5,300 Canadians.

Bankrupcty protection will provide Canwest with "the time and stability needed to implement a controlled financial restructuring of their businesses, and to complete the sale ... while day-to-day business operations continue uninterrupted," the company said in a statement.

Its creditors said they hoped to acquire or sell off the whole of the newspaper division, rather than auction off each newspaper separately, "given the operating synergies that can be realized from a national chain of newspapers and online businesses."

The majority of any potential buyers' voting shares, however, must be Canadian owned, in accordance with Canada's media ownership rules

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