UPDATE 1-Canwest gets extension from noteholders

NEW YORK, April 14 (Reuters) - Canwest Global Communications Corp CGS.TO, Canada's largest media company, announced yet another extension to lender talks on Tuesday as it fights a massive downturn in the advertising market.

Debtholders have agreed not to demand payment of their notes for a period that ends on April 21, Canwest said in a statement.

Canwest subsidiary Canwest Media Inc "continues discussions with its senior lenders and noteholders to develop a framework for a potential recapitalization transaction and to secure the necessary extensions to allow the recapitalization process to process," the Winnipeg, Manitoba-based company said.

Tuesday was the day by which Canwest had to pay $30.4 million in interest to holders of its 8 percent senior subordinated notes. The payment was originally due March 15, but the company missed it.

Under the terms of the debt, investors can demand the repayment of about $761 million of outstanding principal on the notes if Canwest failure to pay the interest.

While critical, the interest payment is only the tip of the iceberg for Winnipeg, Manitoba-based Canwest, which has a debtload of about C$3.7 billion ($3.03 billion), some of it dating back to its 2000 acquisition of newspaper assets from Hollinger International.

Canwest also said Canwest Limited Partnership has initiated talks with its senior lenders about amending financial covenants under its senior credit facility. (Reporting by Anupreeta Das and Wojtek Dabrowski; Editing by Gary Hill)