Canwest LP creditors vote to approve plan

In the first step toward finalizing the purchase of the newspaper group, unsecured creditors of the company approve the plan to emerge from the restructuring process.

Creditors of Canwest LP, the newspaper division of the mediaco, met yesterday and voted to approve the proposed plan to bring the company out of restructuring.

The company in charge of monitoring the vote, FTI Consulting Canada, report that the 97% of votes registered were in favour of the plan, which required two-thirds vote to pass. The plan will go through review by the Ontario Superior Court of Justice on June 18 and if the expected approval is reached, the plan is set to be implemented by July 14, 2010.

The vote marked the first in a series of steps toward the acquisition of Canwest LP by a group of the company’s creditors, which will be led by current National Post president Paul Godfrey. The new company will be run as a public company, with trading beginning as soon as this fall.