Canwest Global Communications on Monday said it has sold The New Republic magazine to its former owner for an undisclosed sum.

Long-time New Republic editor-in-chief Martin Peretz has bought back the magazine he sold it to Canwest Global two years ago. The Canadian broadcaster and publisher said the sale of the American arts and political magazine was ‘part of an ongoing effort to improve its balance sheet.’

Canwest Global has until Wednesday to prove to nervous lenders that it is making headway in shedding non-core assets to pay down a growing $3.7 billion debt load.

The broadcaster earlier sold a stake in sports broadcaster Score Media to its controlling shareholder, John Levy. No buyer has yet come forward to pick up its five E! stations that are also on the auction block.

If Canwest Global successfully concludes crunch talks with senior lenders before the Wednesday deadline, the broadcaster will secure renewed access to a $300 million credit facility.

Failure to hammer out new borrowing terms for the credit line, or to extend negotiations beyond Wednesday, could open the way to a possible filing for bankruptcy protection by Canwest Global.