Sun-Times Media Makes Final Payment To CanWest

DES MOINES, Iowa (AP) — A Canadian newspaper company said Thursday it has received the final 34 million Canadian Dollars ($26.3 million) from Sun-Times Media Group Inc. to settle a dispute lingering from the 2000 acquisition of a group of newspapers.

The Chicago-based owner of the Chicago Sun-Times sold a group of Canadian newspapers to Canwest Global Communications for $3.2 billion in 2000.

At the time, Sun-Times Media was called Hollinger International and led by former media mogul Conrad Black.

Winnipeg-based Canwest originally claimed it was owed 84 million Canadian Dollars ($65 million) as part of an adjustment to the purchase.

Sun-Times Media contested the claim and the case went into arbitration with a Jan. 29 ruling resulting in an award of 51 million Canadian Dollars ($39.5 million) plus interest and costs.

Canwest subsidiary Canwest Media Inc. has received 30.5 million Canadian Dollars ($23.6 million), increasing the amount received to 50 million Canadian ($38.8 million), which was deposited as cash collateral under its senior credit facility. The remaining 3.5 million Canadian ($2.7 million) in settlement proceeds will benefit Canwest Publications Inc., a subsidiary of Canwest Limited Partnership, the company said.