Canwest Global Communications has been granted bankruptcy protection after filing for it earlier this week as part of a recapitalization plan. Canada's largest media company, attempting to tackle its C$4bn mountain of debt, will now be run by a group of creditors led by the Bank of Novia Scotia, Reuters is reporting.

The Winnipeg-based company owns a range of broadcasting and print businesses, including Global TV, and the National Post. Canwest's chief executive, Leonard Asper, said business would carry on as usual despite the legal process: "We are firmly committed to moving quickly to restructure the company and emerge from creditor protection financially stronger and more competitive."

None-the-less Canwest employees are worried they will now be left out in the cold, the Winnipeg Sun is reporting. Whilst Canwest spokesman John Douglas has said that dozens of employees across the organization will have a chance to go after the money owed to them, staff realise they are low on the priority list and many fear they will lose their jobs before Christmas.

Owned by the late Israel Asper, the broadcasting company expanded in 2000 to include print publications, with the purchase of a chain of newspapers previously owned by Conrad Black. Canwest assumed control of dailys such as the National Post, a deal which is now 'widely viewed as key to Canwest's present difficulties because it loaded the company with debt.'

The world economic crisis and subsequent recession in Canada has dealt a tough blow to its newspapers. Drops in advertisement spending, a greater public tendency toward free online news and dwindling circulation numbers has put pressure on news organizations across the globe. Canwest's dilemma comes as many media groups are faced with the threat of bankruptcy and forced to consider the options available to survive.

Source: Reuters, Guardian, Winnipeg Sun