Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Paul Steep – Scotia Capital.
Paul Steep – Scotia Capital
I just want to go to the commentary of your outlook around the negative conditions relating to the debt. First, if you could talk a little bit about which facility and which entity you are worried about the covenants on, and secondly, you have given us a few good examples as we have gone here, but maybe more concretely where you are at in terms of negotiating the covenants and some of the strategies you are going after on the debt.
John E. McGuire
I think it is fair to say that the facility with the most pressure is the senior facility at CW Media Inc. and given the uncertainty in our outlook, we felt it appropriate to provide that cautionary note in our disclosure. We believe that we do have a number of levers that can be pulled, or actions that can be taken, that will help to alleviate the covenant situation and avoid a breach. So if there are actions we can take that will serve compliance. I don’t think we are going to go into any detail on those actions at this time. Just say as in our news release that we are reviewing all of our options.
Paul Steep – Scotia Capital
On that topic, in terms of the restructuring, I know the timing as a little off and it was a little hard to hear you and I think Dennis, as well. I just want to confirm where we are on the plan and then just on the income statement where the charges will fall.
John E. McGuire
Restructuring charges, we have provided a number of provisions to date and they are clearly shown in the quarterly financial statements, for both Publishing and Canadian Television. And I think within the notes we have some record of the history of the accruals and expenditures against those accruals to date.
Paul Steep – Scotia Capital
Just in terms of your filing yesterday with the commission, you talked about some of the [inaudible] consolidate the news operations from Publishing and from the Global side. Maybe you can give us an understanding of what that’s actually going to mean in terms of savings, if the commission goes for it?
Peter Viner
We did not file with any intent to combine the newsrooms of Publishing and Broadcasting. We filed on behalf of our station in Montreal and the general direction of the filing was a reduction in our current obligations and more flexibility in terms of production of local and minority programming. There was no combination.
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