CanWest Global Communication Corp's., proposal to transfer the National Post newspaper to one of its subsidiaries which already contains the firm's other assets such as the Vancouver Sun and Ottawa Citizen, has been given approval by both the court and lenders. The transaction will close on Sunday and save the future of the 11 year old daily which circulates to almost all of the country's major markets.

In the documents filed by CanWest in the court this week, the company stated that if the required shuffling does not happen, it will have to axe the publication of the National Post. It was revealed that creditors at the parent company were no longer willing to cover any more losses at the newspaper.

After the ruling was passed, Paul Godfrey, president and CEO of the Post, said "The Post has found its logical home, and hopefully these doomsday scenarios we have been hearing for more than a decade will soon disappear. This is another step on the path to profitability".

The National Post currently has a work force of 277 employees. Last year alone, the newspaper had lost $9.3 Million and is presently indebted to CanWest Media for $139 Million. The recent development might have been able to save the newspaper for now, but what happens in future remains to be seen.