Ontario Court grants two key extensions to Canwest group

An Ontario court extended Canadian media company, Canwest Global Communications Corp, court protecti

Canwest filed for bankruptcy protection for its newspaper arm under the Companies' Creditors Arrangement Act last month, after facing a deep decline in its advertising revenues.

The company terminated 840 employees to cut costs.

Canwest's newspapers including the National Post, Ottawa Citizen, and the Montreal Gazette were put up for sale. The company has received several offers, but is not sure if any would match its asking price of C$925m for the titles.

Following the court's order, holders of about C$300m (US$283m) of Canwest notes, complained that the auction process was unfair as it gave a group of bank lenders a veto over bids.

The Ontario Superior Court said it would appoint a monitor to decide which bids could proceed to a final auction round.