Canwest initiates ownership talks with regulators-paper

Aug 10 (Reuters) - Canadian media company Canwest Global Communications Corp CGS.TO, which is struggling under a debt load of nearly C$4 billion ($3.7 billion) has initiated talks on a potential ownership change with Canadian regulators, Toronto's Globe and Mail reported on its website late on Sunday.

The paper, citing several sources involved in the restructuring, said the main issue is whether Canwest's creditors can stay within the country's ownership rules for broadcasting assets if they convert debt owed to them into equity in the new restructured firm.

The Canadian Radio-television and Telecommunications Commission (CRTC) requested a copy of the shareholders agreement when it is complete, according to the paper.

CanWest and its creditors have to agree on a restructuring plan including possibly filing for protection under the Companies' Creditors Arrangement Act, before submitting it to the CRTC, the paper said.

Formal talks have not yet begun between Canwest and the Canadian regulators, the paper added.

Canwest could not be immediately reached for comment by Reuters.

The Winnipeg, Manitoba-based company owns the Global TV network and a stable of daily newspapers across Canada. ($1=1.081 Canadian Dollar) (Reporting by Ajay Kamalakaran in Bangalore; Editing by Rupert Winchester)