An insolvent Canwest Global Communications and Goldman Sachs & Co. are fighting it out in a Toronto courtroom to resolve a dispute over whether 13 Canadian specialty channels are included in the broadcaster’s court-directed restructuring.

Goldman Sachs investment banker Gerry Cardinale — who in 2007 helped sell the CRTC on the $1.4 billion Alliance Atlantis deal — this week filed court documents in the Ontario Superior Court of Justice that accuses Canwest Global of putting specialty channels it manages as part of a joint entity that includes Global Television into its CCAA creditor protection.

Cardinale alleges Canwest Global, without warning, closed down a numbered company that Goldman Sachs set up in 2007 to hold the specialty channels as they were managed by the Canadian broadcaster.

The profitable channels, which include HGTV Canada and Food Network Canada, were not included in Canwest Global’s creditor protection filing on Oct. 6.

Cardinale argues the disappearance of the numbered company allows U.S. bondholders that now control Canwest Global’s destiny to control the specialty channels.

‘We expected that before any insolvency filing, Canwest would advise us if and how (Goldman) would be affected and how the specialty-TV business figured into the plans of the restructured Canwest,’ the banker argued in its legal motion for the subsidiary to be restored.

Goldman Sachs expects Canwest Global to either buy out its stake in the 13 specialty channels beginning in 2011, or allow those assets to be put on the open market.

The U.S. investment bank in October told the Ontario Superior Court of Justice that it saw no need to open or alter the 2007 agreement where Goldman Sachs largely financed Canwest Global’s takeover of the 13 channels.

John Douglas, VP of public affairs at Canwest Global, said the broadcaster was reviewing the Goldman Sachs filing.

‘We believe the issues raised are without merit, and we will respond through the court process as appropriate,’ he added.