Canwest Global Communications has filed for creditor protection as part of an overall recapitalization deal agreed with its lenders. The agreement will see Canwest Global emerge from creditor protection under Canada’s Companies’ Creditors Arrangement Act in around six months without company president and CEO Leonard Asper in operational control of the restructured media group.

‘This pre-packaged financial restructuring is intended to minimize business disruption and preserve the value of these business operations,’ Asper said in a statement of the voluntary CCCA filing.

Included in the filing are a host of Canwest Global assets, including Global Television and the National Post newspaper. Excluded from the filing are the rest of the Canadian newspaper assets and 13 specialty channels operated in partnership with Goldman Sachs & Co.

As part of CCCA rules, Canwest Global creditors cannot seize assets while the broadcaster works to reorganize its assets.

The agreement follows a year of negotiations towards an overall restructuring.

Once completed, existing shareholders will be reduced to a 2.3% stake in Canwest Global. The Asper family, who until now have held voting control of the media group, by agreement with lenders will be able to invest up to $15 million in the company, subject to conditions, or around a 10% stake.

The ultimate fate of the Aspers is yet to be determined by the distressed debt funds that now control Canwest Global’s destiny as it passes through court protection.

The voluntary filing and protection aims to minimize disruption for Canwest Global’s 1,700 Canadian employees.

Canwest Media, a holding company for Canwest Global, has $65 million in cash following the recent sale of the Australian Network Ten stake and $100 million in debtor in possession financing to keep operating through creditor protection.

‘This controlled and orderly financial restructuring plan will provide a renewed financial outlook for these business units and put them on a stronger footing for the future,’ Asper told employees in an internal memo.

The Canwest Global chief pointed to ballooning debt as the culprit that forced the controlled trip through creditor protection.