National Post CEO Godfrey likely to lead buyout of Canwest papers

[This post has been updated.] National Post chief executive officer Paul Godfrey has apparently lined up sufficient private equity backers to make a bid for all, or some, of the CanWest papers when they are put on the market, probably by the end of the year.

According to a story by Andrew Willis in the Globe and Mail Godfrey -- who led a very profitable management buyout of the Sun newspaper chain in 1996 (later sold to Quebecor Inc.) -- is in discussions with private equity funds who want to buy all or part of the national chain, which includes the Ottawa Citizen, The Gazette of Montreal, Calgary Herald and both major Vancouver papers, the Sun and the Province.

[Update: Canwest denies that its papers are for sale.]

It was not clear from the story whether that interest extends to the National Post, whose leadership Godfrey took over in January. But it seems likely.

CanWest's newspapers are expected to formally go up for sale in the coming weeks, as the Winnipeg-based company announces a restructuring that will see creditors who are owed $2.5-billion swap their debt for equity.

As part of this recapitalization, lenders that include Bank of Nova Scotia are expected to end up controlling the newspaper subsidiary, CanWest LP, and selling its assets. The Asper family, heirs to the founder of this media empire, are expected to lose control of CanWest.