Some former senior newspaper editors at a troubled Canadian media group stand to lose as much as C$14.4 million in pension benefits that are not backed by letters of credit (L/Cs).

The former editors worked for CanWest Limited Partnership, one of Canada's largest media groups, which has filed for bankruptcy protection from creditors.

No security

At least seven former senior newspaper executives who were members of an executive pension plan created by a company called Southam Inc. stand to lose out now that the company has filed for bankruptcy protection from creditors.

The Southam plan was not secured by L/Cs, so whether the former editors will be able to recover any of the money they are owed will depend on the outcome of a forthcoming sale of CanWest's assets.

L/C benefits

Other former editors look as though they will fare better.

Their pension arrangements with benefits worth C$1.9 million are under a different pension plan that is secured by a L/C.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.