Canwest Global Communications has sold off its 50.6% stake in Australia’s Network Ten to raise around $634 million to pay down debt. Canwest sold its controlling stake in the Australian broadcaster via a block trade executed by Sydney-based Macquarie Capital Advisers. The sale ends months of speculation that Canwest Global would be forced by its U.S. bondholders and senior lenders to sell its controlling stake to pay down its $3.8 billion debt load and avoid bankruptcy protection.

Canwest Global in a statement said a prior agreement with its debt holders will see the broadcaster repay $102 million in senior notes owed by divisions Canwest Media Inc. and Canwest Television Ltd. Partnership. Another $85 million will pay down a revolver loan with lender CIT Business Credit Canada, with the facility remaining available to the broadcaster after repayment. Canwest Global will also deposit $426 million with a trustee for U.S. bondholders owed US$761 million, and with whom the broadcaster is negotiating a recapitalization plan along with senior lenders.

Besides raising much-needed cash, Canwest Global will further strengthen its balance sheet by eliminating around $582 million worth of Network Ten debt.