Friday, Catalyst Capital Group Inc., and Partners that includes the Asper family and Canadian broadcasting industry executives, Rael Merson and John Tory, said that it has submitted a restructuring proposal to Canwest Global Communications C's (CGS.TO) Special Committee to facilitate its emergence from the CCAA process.
The Proposal requires no material amendments to the original court filed plan and would maximize the value of the Canwest estate while expediting its exit from the CCAA process as a public company. The Catalyst Group is proposing to provide $120 million of value for about 32% equity interest and voting control in a restructured Canwest.
The company noted that the proposal has the support of CW Media Holdings Inc. joint venture partner, Goldman Sachs Capital Partners and will also be submitted to the court in Ontario overseeing the Canwest CCAA restructuring process.
The Catalyst Group plans to propose Rael Merson, former President and CEO of Rogers Broadcasting Limited, as Chief Executive Officer and Leonard Asper as Non-Executive Chairman.
Newton Glassman, managing partner of Catalyst Capital Group., said,"The Catalyst Group proposal treats all the company's unsecured creditors equally and the continuance of a publicly listed Canwest provides creditors and other stakeholders with an immediate path to liquidity. The Shaw proposal as it stands results in two separate classes and treatment of creditors, necessarily requires substantial amendments to the Court approved plan and faces hurdles that could delay the emergence of Canwest from creditor protection."
Glassman further said," it is difficult to see how any proposed deal can be effected without Goldman Sachs Capital Partners. Indeed, Shaw's own proposal is conditional on coming to terms with Goldman Sachs Capital Partners on a new shareholders agreement."
CGS.TO last traded at C$0.235 on Toronto Stock Exchange.
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