So where are CanWest’s creditors! Hard to believe that creditors, holding debt into the billions of dollars or piles of almost worthless CanWest shares are standing by and letting a few million more dollars slip from CanWest’s coffers.
The marvelous money mavens at CanWest plan to shut their Victoria’ CHEK TV station down at month end. Seems they can’t make a go at a station that others had made a go of for more than 40 years. So kill it!
And to solidify their reputations with many as fiscal incompetents … they have also turned down a $2.5 MILLION offer from former employees and other business interest to buy the station and keep it operating.
Turned down $2.5 MILLION!!! At a time when other stations have been sold back East for reportedly as little as $12! Yes, that’s $12!
CanWest’s quoted logic is that the CHEK offer doesn’t include assumption of any expenses/debt accumulated during the transfer period … so CanWest wants $5 MILLION … not $2.5 MILLION. Ridiculous!!!
If CHEK simply closes down, does the station’s debt disappear? Of course not … it remains a CanWest liability. So the offer … any offer … to mitigate that debt, especially a very substantial $2.5 MILLION CASH … should be more than welcome.
I’d bet CanWest’s unfortunate debtors would like to see that $2.5 MILLION in their hands.
Not to mention CanWest’s obligation to the community at large, after apparently totally screwing up the operation of such a television icon in British Columbia’s capital city.
Remember that campaign to fool the CRTC by claiming private television networks want a share of cablevision revenues to help save local television. What they really want is a share of cablevision revenues AND the closing down of many local stations with less than stellar revenues. To hell with serving the local conmmunities.
My own suspicion is that CanWest wants CHEK gone to shore up ratings at its CHAN CanWest Global station in Vancouver. Plain and simple … if they can’t own CHEK … kill it off. And hope a good number of the viewers shift to CHAN.
You may ask … where is the CRTC on any of this?
Of course, from what I can see, nowhere. I believe the CRTC long ago abandonned its responsibilities to local communities: seeing its primary role now as bailing out greedy corporations, which in their rush to acquire and expand, went too far too fast. And now demand .. and will likely get … new sources of revenue … while still shutting down many local stations.
CHEK’s new financiers deserve a chance to at least try.
And if CanWest’s money managers are willing to thumb their noses at $2.5 MILLION … CanWest’s creditors should not be!